Stock markets in North America were down in midday trading, as concerns grow over the trade war sparked by U.S. President Donald Trump’s tariffs and the looming possibility of a recession.
In Toronto, the S&P TSX composite index was down by one per cent by 11:45 a.m., knocking $40 billion off the value of shares. In New York, the broad-based S&P 500 was off by 2.7 per cent, the Dow Jones industrial average fell by 2.7 per cent and the tech-heavy Nasdaq was down three per cent. The drop in the S&P 500 alone knocked more than $1 trillion (U.S.) off the value of stocks.
The Canadian dollar, meanwhile, continued to rise, and was at 72.38 cents (U.S.), up from Thursday’s average price of 72.16 cents.
Oil also fell, dropping to $63.04 (U.S.) per barrel for U.S. benchmark West Texas Intermedia, a fall of 2.5 per cent.
Trump also ramped up the public pressure on U.S. Federal Reserve chair Jerome Powell to cut interest rates, referring to the central bank head as a “major loser.”
In a post on Truth Social Monday, Trump insisted U.S. inflation was down, and that interest rates should also be cut by the Fed.
“Preemptive Cuts” in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other “things” trending down, there is virtually No Inflation,” Trump posted. “There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
In Asia overnight, stock markets were mixed. Tokyo’s Nikkei 225 index tumbled 1.3 per cent, while Hong Kong’s Hang Seng index was up 1.6 per cent and Shanghai’s SSE was up 0.5 per cent.
China, meanwhile, warned other countries against making trade deals with the United States to China’s detriment.
Governments including those of Taiwan, Japan and South Korea have begun negotiations with Washington after Trump announced sweeping tariffs against almost all of the U.S.‘s trading partners on April 2. The import taxes were quickly paused against most countries after markets panicked, but he increased his already steep tariffs against China.
“China firmly opposes any party reaching a deal at the expense of China’s interests,” China’s Commerce Ministry said in a statement. “If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests.”
U.S. Treasury Secretary Scott Bessent said earlier this month the countries currently negotiating trade deals with the U.S. should “approach China as a group” together with Washington.
The U.S. tariffs against other countries are economic bullying, the ministry said in the statement attributed to an unnamed spokesperson.
With files from Star wire services.
