ºÃÉ«tv

Markets have been falling since last Thursday as they reacted to Trump's sweeping round of tariffs on a wide swath of countries, with market watchers eyeing the growing possibility of a recession.

China said it would retaliate to the new duties on its goods, and Trump responded by threatening to ramp up the tariffs. On Tuesday, Trump followed through on his threat, announcing imports from the country will be taxed at 104 per cent.

Markets had been paring back their earlier rally, and continued steadily descending into the red after the announcement.

The S&P/TSX composite index closed down 352.56 points, or 1.5 per cent, at 22,506.90. Energy stocks dragged the index lower as the price of oil fell below US$60 a barrel, with the energy index down almost five per cent. 

In New York, the Dow Jones industrial average was down 320.01 points, or 0.8 per cent, at 37,645.59. The S&P 500 index was down 79.48 points, or 1.6 per cent, at 4,982.77, while the Nasdaq composite was down 335.35 points, or 2.2 per cent, at 15,267.91.

"The last three days have been very challenging for markets and for investors," said Anish Chopra, managing director with Portfolio Management Corp.

"The markets are absorbing the impact of the tariffs on the global economy, on oil prices, trade, GDP growth in various countries, as well as on GDP growth globally."

Before the latest tariff news on China, markets around the world were higher with rallies on Asian and European markets. 

It's the latest example of the volatility that's been a key feature of financial markets amid a steady stream of tariff headlines, with stocks often swinging wildly between days and even hours. 

Trump indicated Monday that a deal could be imminent with South Korea, and there's hope he could negotiate with other global players as well. 

“We are likewise dealing with many other countries, all of whom want to make a deal with the United States," Trump said on social media. 

This sparked optimism in investors that more deals could be reached and the tariff impact on the global economy lessened, Chopra said. 

Kourkafas said investors should expect more tariff headlines in the coming weeks as the U.S. looks to reach deals with countries, while some countries may follow in China's footsteps and retaliate.

Economists and market watchers have warned the tariffs could lead to a recession.

U.S. bank results will kick off earnings season at the end of the week, he noted. 

Given the circumstances, "I think the focus is going to be on the forward outlook and the guidance that they provide." 

The ºÃÉ«tv dollar traded for 70.44 compared with 70.29 cents US on Monday.

The May crude oil contract was down US$1.12 at US$59.58 per barrel, continuing its descent from last week amid concerns over what an economic slowdown will mean for global demand. 

The May natural gas contract was down 19 cents US at US$3.47 per mmBTU.

The June gold contract was up US$16.60 at US$2,991.10 an ounce and the May copper contract was down five cents US at US$4.14 a pound.

This report by ºÃÉ«tvwas first published April 8, 2025.

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