TSX closes with gains as investors eye Trump tariff developments

Investing.com - Canada’s main stock exchange rose on Tuesday, with investors assessing possible changes to U.S. President Donald Trump’s tariff policies.

By the 4:00 ET close, the S&P/TSX 60 index ticked higher by 11.8 points, or 0.8%.

Toronto Stock Exchange’s S&P/TSX composite index rose 201.4 points or 0.8% on the day, having climbed by 278.73 points, or 1.2%, on Monday, notching its highest closing level since April. The average extended a bounce back from an eight-month low last week.

All 10 of the major sectors rallied, with the heavily-weighted financials group gaining 1.7% in particular.

Underpinning sentiment were hopes that Trump’s punishing tariffs may not be as extreme as initially thought.

Late on Friday, the White House exempted some tech-related products, including smartphones and computers, from steep reciprocal levies. The move came after Trump announced a partial delay for many countries to his reciprocal duties following deep volatility in stock markets and a sharp sell-off in U.S. Treasuries.

Traders were also looking ahead to a Bank of Canada policy decision this week. Growing risks of a tariff-driven recession in Canada have led some economists to predict that the central bank will slash borrowing costs twice this year, although a majority expect policymakers to leave rates unchanged at 2.75% at their gathering on Wednesday.

Canada’s inflation slowed in March, as Statistics Canada released a report showing the country’s CPI increased by 2.3% y-o-y in March 2025, a slight dip from February’s 2.6% rise, and lower than analyst expectations of 2.7%.

There were concerns in the auto sector, as reports surfaced that Honda (NYSE:HMC) was shifting its auto production to the U.S. These reports were denied, as the company said, "No changes are being considered at this time."

U.S. stocks edge lower

U.S. stock indexes edged lower Tuesday, as sentiment remained fragile while investors awaited more corporate earnings amid uncertainty over Trump’s tariffs.

By the 4:00 ET close, the Dow Jones Industrial Average fell 155.8 points, or 0.4%, the S&P 500 declined 9.4%, or 0.2%, and the NASDAQ Composite dropped 8.3 points, or 0.05%.

The main Wall Street indices have recorded two straight days of gains as investors cheered some exemptions from Trump’s extensive tariffs policy with China. A measure of bargain buying has also aided markets after sharp losses over the past few weeks, as investors reacted to the uncertainty surrounding the new U.S. trade policy. 

The Trump administration has said it is kicking off investigations into imports of pharmaceuticals and semiconductors products, as it gauges whether to impose tariffs on these sectors.

This follows the president saying on Monday that he might even grant exemptions to automobiles. 

Federal Reserve Governor Christopher Waller argued that the inflationary impact of the duties may be transitory. Still, he flagged caution around the growth outlook due to the trade taxes, saying they amount to “one of the biggest shocks to affect the U.S. economy in many decades.”

Oil steadies

Oil prices steadied, as traders digested concerns over global growth as well as optimism over the Trump administration’s recent tariff exemptions as well as a rebound in Chinese crude oil imports.

By 5:20 ET, Brent Oil Futures drifted lower by 0.06% to $64.85 a barrel. Crude Oil WTI Futures traded up 0.03% to $61.55 per barrel.

Data released on Monday showed that China’s crude oil imports in March were up nearly 5% from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter U.S. sanctions enforcement.

Gold prices hover below record high

Gold prices were below a new record high logged on Monday, as demand for traditional safe haven assets remained supported by the uncertainty over U.S. trade tariffs.

Bullion lost some ground in recent sessions as the exemption of electronics imports from steep U.S. tariffs on China helped spur some risk sentiment.

But Trump’s 145% tariffs on China, coupled with Beijing’s retaliatory 125% tariffs, have escalated a bitter trade war between the world’s two biggest economies. This notion kept gold bolstered by haven demand.

Spot gold rose 0.6% to $3,229.58 an ounce, while gold futures expiring in June advanced by 0.6% to $3,247.00/oz by 5:20 ET.

(Scott Kanowsky also contributed to this article)