TORONTO — Canada's main stock index fell more than 100 points to cap off Tuesday's trading session, weighed down by losses in the basic materials sector, while U.S. stock markets were mixed.
The S&P/TSX composite index was down 116.71 points at 26,903.57.
Theresa Shutt, chief investment officer at Harbourfront Wealth Management, said there are a couple of reasons for the decline, including uncertainty around trade negotiations between Prime Minister Mark Carney and U.S. President Donald Trump.
"There was some discussion that this would be settled by the end of summer. I think we're all still hopeful that it will be, but there's been some stops and starts," said Shutt.
Another factor was U.S. tariff threats on copper, she said.
Trump told reporters at a cabinet meeting Tuesday he will impose a 50 per cent tariff on copper imports, but didn't say when it will take effect. The level of tariff was confirmed in the meeting by Commerce Secretary Howard Lutnick. The president, however, was not scheduled to sign any executive orders on Tuesday to implement the duties.
Data from Natural Resources Canada shows the United States accounted for 52 per cent of Canada's copper export value in 2023. That year, Canada's total exports of copper and copper-based products were valued at $9.3 billion.
"Perhaps the market hasn't had as much time to react, or perhaps it reacted too quickly. But, until we have time to really digest what that means, I'm not sure what the longer-term implications might be for equity markets," Shutt said.
In New York, the Dow Jones industrial average was down 165.60 points at 44,240.76. The S&P 500 index was down 4.46 points at 6,225.52, while the Nasdaq composite was up 5.95 points at 20,418.46.
"In the U.S., I would say that markets are really just treading water and struggling to keep up with the different signals on trade that are somewhat conflicting recently," Shutt said.
On Monday, Trump set a 25 per cent tax on goods imported from Japan and South Korea and new tariff rates on a dozen other countries scheduled to go into effect on Aug. 1.
Just before hefty U.S. tariffs on goods imported from around the globe were to take effect in April, Trump postponed the levies for 90 days in hopes foreign governments would be more willing to strike new trade deals. That 90-day negotiating period was set to expire before Wednesday.
"There are a lot of significant details to be negotiated, particularly with China — frankly, the world's largest trading partner. So there are unknowns. I think today the market was cautiously optimistic while also holding its breath," Shutt said.
She added tariffs are likely to "creep into profits" for some U.S. firms.
"They will have impacts on demand. So I think we're going to see some softer valuations in Q4. But because the impact is lagging, it may take some time for us to see that," Shutt said.
The Canadian dollar traded for 73.12 cents US compared with 73.23 cents US on Monday.
The August crude oil contract was up 40 cents US at US$68.33 per barrel.
The August gold contract was down US$25.90 at US$3,316.90 an ounce.
This report by The Canadian Press was first published July 8, 2025.
— With files from The Associated Press
Companies in this story: (TSX: GSPTSE, TSX: CADUSD)
Daniel Johnson, The Canadian Press
