Canada’s main stock index edged lower on Friday, tracking global peers, amid renewed trade tensions sparked by U.S. President Donald Trump’s recommendation of 50% tariffs on European Union imports.
The Toronto Stock Exchange’s S&P/TSX composite index was down 0.13% at 25,821.36 points and set for its first weekly decline in seven weeks.
Global equities tumbled after Trump recommended tariffs on goods from the EU starting on June 1.
“It seems his (Trump) focus is turning towards the eurozone and less towards Canada now … Canadian indices are in positive territory on the year … so we’re doing quite well, relatively,” said Shiraz Ahmed, senior portfolio manager at Raymond James Ltd.
“The challenge is, it’s a very dynamic environment that continues to change on a daily basis,” he said.
On Thursday, the Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill, raising concerns about worsening fiscal outlook in the world’s biggest economy; the bill now heads to the Senate for approval.
Bank of Canada Governor Tiff Macklem said on Thursday that he expected second-quarter growth to be “quite a bit weaker” than the first quarter, and that it could be worse in subsequent quarters if the uncertainty around U.S. tariffs continued.
The central bank last month forecast annualized first-quarter GDP would be 1.8% but did not give any other projections, citing uncertainty over U.S. tariff policy.
Statistics Canada will release the first-quarter GDP data on May 30, a week before the central bank’s next interest rate decision.
On TSX, information and technology and healthcare stocks fell 1.1% and 1.2% respectively on Friday.
Metal miners’ shares gained 0.8% as gold prices rose 1%.
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