Stock markets in North America were down in early 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 0.7 per cent by 10:15 a.m. In New York, the broad-based S&P 500 was off by 2.1 per cent, the Dow Jones industrial average fell by 1.5 per cent and the tech-heavy Nasdaq was down 2.7 per cent.
The Canadian dollar, meanwhile, continued to rise, and was at 72.44 cents (U.S.), up from Thursday’s average price of 72.16 cents.
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.
