Canada’s main stock index was flat on Wednesday in choppy trading ahead of U.S. President Donald Trump’s reciprocal tariff announcement, with investors fearing significant ripple effects on global economic growth.
Toronto Stock Exchange’s S&P/TSX composite index was down 0.03% at 25,025.74 points, after two straight sessions of gains.
Trump, who has kept the world guessing on the details of the levies plans for weeks, is set to announce sweeping reciprocal tariffs on global trading partners at 1600 ET (2000 GMT), in what the White House has dubbed “Liberation Day.”
The tariffs, which will take effect immediately upon announcement, are expected to trigger price increases, prompt retaliatory measures from affected countries and disrupt decades of established trade practices.
“We are heading into a very, uncertain period and it is going to be a rough ride … this is a day where people should be already positioned in what they consider to be safer havens,” said Michael Sprung, president at Sprung Investment Management.
Communication stocks led the declines on Canada’s benchmark index, down 0.8%.
Materials stocks declined for the second straight session, down 0.6%, tracking lower copper prices.
Energy stocks fell 0.5%, as oil prices extended losses on concerns that an escalating trade war could dampen demand for crude.
Looking ahead, market participants will turn to Federal Reserve Chair Jerome Powell’s speech on Friday for insights on the health of the U.S. economy and trajectory of interest rates.
Traders expect three rate cuts from the Fed this year, although concerns about inflation driven by tariffs are adding uncertainty to the outlook.
Among individual stocks, Blackberry fell 11.6% after the cybersecurity firm forecast a revenue decline in fiscal 2026 as it anticipated weak spending on its cybersecurity products.
