Canada’s main stock index recovered on Wednesday, helped by the news of U.S. President Donald Trump’s administration considering reducing the stringent tariffs on Canadian and Mexican imports.
The TSX Composite Index came off its highs of the morning, but had still regained 50.38 points to break for lunch Wednesday at 24,622.38.
The Canadian dollar faded 0.04 cents to 69.41 cents U.S.
U.S. Commerce Secretary Howard Lutnick said on Tuesday the government was considering easing the 25% tariffs on Canadian and Mexican imports to products that comply with the trade pact negotiated with the two nations during Trump’s first term.
Two sources privy to the discussions between the Trump administration and officials from Canada and Mexico said the negotiations are focused on exemptions for companies that adhere to the rules of origin in the 2020 U.S.-Mexico-Canada Agreement.
These discussions primarily, though not exclusively, target the automotive industry.
Trump escalated a global trade war on Tuesday after he imposed the tariffs on top U.S. trade partners, citing ineffective border controls.
ON BAYSTREET
The TSX Venture Exchange recovered 5.91 points, or 1%, to 599.98.
Seven of the 12 TSX subgroups stayed afloat by noon hour EST, with materials grabbing 2.7%, gold better by 2.2%, and consumer discretionary stocks, ahead 1%.
The five laggards were weighed by energy, falling 2.2%, while health-care dipped 0.8%, and utilities dropped 0.4%.
ON WALLSTREET
The S&P 500 gyrated on Wednesday amid ongoing uncertainties tied to President Donald Trump’s controversial tariffs.
The Dow Jones Industrials picked up 144.36 points to 42,665.35.
The much-broader index gained 2.75 points to 5,780.90.
The NASDAQ Composite advanced 9.59 points to 18,294.75.
Commerce Secretary Howard Lutnick said late Tuesday that he expected an announcement on an agreement with Canada and Mexico. Lutnick added on Wednesday morning that Trump was considering which sectors of the economy to give relief to on the taxes.
Those updates boosted stocks like automakers that were hard hit due to concerns about rising costs for materials. General Motors grabbed 3% and Ford advanced 2%.
A reading on the health of the service sector released Wednesday morning came in slightly better than economists expected. But the ADP private payroll report released earlier in the day showed less job growth than anticipated, adding yet another data point to the growing body of evidence indicating the economy was cooling.
Prices for the 10-year Treasury edged lower, lifting yields to 4.25% from Tuesday’s 4.20%. Treasury prices and yields move in opposite directions.
Oil prices dropped $2.94 to $66.09 U.S. a barrel.
Prices for gold strengthened $11.00 an ounce to $2,932.10 U.S.
