FX.co ★ TSX Plunges Amid Tariff Fears and Trade Imbalances

The S&P/TSX Composite Index experienced a significant decline, dropping approximately 2% to slip below the 24,750 threshold on Thursday. This downturn was primarily attributed to President Trump's announcement of aggressive reciprocal tariffs, which have stoked fears of an escalating global recession and disruption in supply chains. Although the USMCA provides Canada with relative exemptions, the prevailing uncertainty is heavily impacting sectors reliant on exports. This concern is further amplified by recent domestic figures reporting a 5.5% decrease in merchandise exports in February, alongside a trade balance deterioration that shifted from a $3.1 billion surplus in January to a $1.5 billion deficit. The anticipation of additional tariff increases, potential retaliatory measures, rising input costs, and worries about slowing industrial activity have heightened investor caution, triggering a widespread sell-off. Sectors such as technology, finance, and commodities have been significantly affected, with Shopify plummeting over 15%, Brookfield declining 5.5%, Imperial Oil falling 6.5%, and Barrick Gold decreasing by 4%.