TORONTO – Canada’s main stock index ended Thursday unchanged from a day earlier, while U.S. markets were down after U.S. President Donald Trump announced plans for auto tariffs.
U.S. President Donald Trump announced on Wednesday new tariffs on the auto sector to start next week alongside other previously announced tariffs.
Auto industry leaders have warned the tariffs will essentially shut down the sector and cause layoffs on both sides of the border, while experts also say the tariffs will make cars more expensive for consumers.
The new tariffs would be “pretty punitive” for certain countries, including Canada, said Michael Greenberg, head of Americas portfolio management at Franklin Templeton Investment.
However, unlike some of the previous tariff announcements over the past month, this one didn’t prompt a significant market slide.
“We had a wild couple of weeks, and we had a very, very quick drawdown in the equity market … and then a pretty quick rebound,” said Greenberg.
After so many announcements, exemptions and delays, it’s possible investors are now settling in to wait for April 2 and see what actually unfolds, he said.
The S&P/TSX composite index was unchanged at 25,161.06.
In New York, the Dow Jones industrial average was down 155.09 points at 42,299.70. The S&P 500 index was down 18.89 points at 5,693.31, while the Nasdaq composite was down 94.98 points at 17,804.03.
Shares in the major automakers sank in the U.S. — General Motors by 7.4 per cent, and Ford by 3.9 per cent — while other global auto stocks fell too. However, electric-vehicle makers like Rivian and Tesla fared better, with Tesla making modest gains and Rivian rising 7.6 per cent. The two companies have more production within the U.S.
A report Thursday said the U.S. economy’s growth was better last quarter than expected.
So far the effects of tariffs and uncertainty caused by Trump’s policies aren’t really showing up in hard economic data, which is delayed, said Greenberg.
But so-called “softer” data such as consumer and business sentiment surveys are weakening noticeably, he said.
“The longer we have this uncertainty, the higher probability it will start to wean into the real, hard data.”
Tariffs are expected to both push and pull on the Canadian and U.S. economies, said Greenberg, weighing on economic growth while putting upward pressure on inflation.
The Canadian dollar traded for 69.89 cents US compared with 70.09 cents US on Wednesday.
The May crude oil contract was up 27 cents US at US$69.92 per barrel and the May natural gas contract was up six cents US at US$3.93 per mmBTU.
The June gold contract was up US$38.60 at US$3,090.90 an ounce and the May copper contract was down 12 cents US at US$5.12 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published March 27, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
