Canada’s main stock index slipped on Friday as investors assessed U.S. President Donald Trump’s new tariff regime that included levies on Canada and dozens of other countries.
The S&P/TSX composite index was down 1.4% at 27,878.91 points, posting its biggest percentage decline in nearly four months.
The index is set to snap a two-week winning streak.
Trump late on Thursday signed an executive order increasing tariffs on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement to 35% from 25%.
He also imposed duties ranging from 10% to 41% on imports from countries including Brazil, India and Taiwan.
“President Trump has always been for negotiation…Canada will get a deal done but at what cost that’s the question,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
“The good news is most of the things that we send to the U.S. fall under the USMCA. But we’re hearing that Trump wants to negotiate that agreement in 2026…that will be a much greater ramification.”
Healthcare stocks fell 1.7%, tracking losses in U.S. and European peers after Trump sent letters to the leaders of 17 major pharmaceutical firms, outlining how they should cut U.S. prescription drug prices to match those paid overseas.
Technology shares led the broader sectoral decline with a 3.3% fall, after tech giant Amazon’s results disappointed investors.
Energy stocks fell 2.6%, tracking lower oil prices.
Among individual stocks, Imperial Oil posted a fall in second-quarter profit, sending its shares down 1.8%.
NFI Group slipped 4.6% after the bus and coach manufacturer missed second-quarter revenue estimates.
Data showed that U.S. job growth slowed more than expected in July, while the prior month’s data was revised sharply lower, pointing to a steep moderation in the labor market.
Meanwhile, Canada’s manufacturing sector contracted for a sixth straight month in July, hit by tariffs.
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