TSX, U.S. markets continue to sell off Thursday after latest Trump tariff threat

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This article was published 13/03/2025 (204 days ago), so information in it may no longer be current.

TORONTO – Canadian and U.S. markets continued their sell-off Thursday as U.S. President Donald Trump’s tariff streak continued, taking the S&P 500 into its first correction since 2023.

A correction is when an index falls more than 10 per cent below its record, which the S&P 500 did as it fell 1.4 per cent, down 77.78 points to 5,521.52. 

The Dow Jones industrial average was down 537.36 points, or 1.3 per cent, at 40,813.57, while the Nasdaq composite was down 345.44 points, or two per cent, at 17,303.01.

The S&P/TSX composite index closed down 220.11 points at 24,203.23. The move lower was led by technology and financial stocks, while base metals helped offset losses. 

Trump threatened 200 per cent tariffs on champagne and other European wines unless the European Union rolls back a tariff on U.S. whiskey. 

The whiskey tariff was in response to Trump’s tariffs on steel and aluminum. 

“We’ve had this volatility for a number of weeks now” in response to the president’s tariffs, said Tamsin Wilding, principal and portfolio manager for fixed income at Leith Wheeler Investment Counsel Ltd.

Markets have been volatile not just daily, but hour-to-hour, sometimes swinging between losses and gains during the trading day. However, the broader trajectory has been decidedly downward since Trump first enacted the tariffs he had been threatening. 

Adding to the uncertainty of tariff back-and-forths are geopolitical concerns, said Wilding, with discussions over a Russia-Ukraine ceasefire ongoing. 

“The market continues to struggle to rally,” she said. 

Economic data in the U.S. this week, starting with consumer inflation on Wednesday and wholesale inflation on Thursday, provided a spot of optimism. The two reports came in milder than economists expected, which is good news for market watchers as inflation has been stubborn in the U.S., and weaker inflation means interest rate cuts are more likely. 

“I think it paints the picture that the economy was in a pretty different place (before) this escalation of tariffs. So there is somewhat of a buffer there,” said Wilding. 

But that strength, and market reaction to it, is getting “discounted” because it doesn’t include the impact of tariffs, said Wilding.

The Canadian dollar traded for 69.40 cents US compared with 69.49 cents US on Wednesday.

The April crude oil contract was down US$1.13 at US$66.55 per barrel and the April natural gas contract was up three cents at US$4.11 per mmBTU.

The April gold contract was up US$44.50 at US$2,991.30 an ounce and the May copper contract was up eight cents at US$4.93 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published March 13, 2025.

Companies in this story: (TSX: GSPTSE, TSX: CADUSD)