Canadian Stocks Move Sharply Lower After Trump Announces Tariffs

(RTTNews) - Following the rally seen over the course of the previous session, Canadian stocks showed a substantial move back to the downside during trading on Thursday.

The benchmark S&P/TSX Composite Index plunged early in the session and remained sharply lower throughout the day before closing down 971.41 points or 3.8 percent at 24,335.77.

The sell-off on Bay Street came amid concerns about a global trade war after President Donald Trump outlined his plan to impose sweeping tariffs on U.S. trade partners.

Trump's "reciprocal tariff" plan calls for a baseline 10 percent tariff to be imposed on all U.S. imports except those compliant with the United States-Mexico-Canada Agreement.

Certain countries deemed the "worst offenders" will face much higher tariffs, with countries like Cambodia, Laos, Madagascar and Vietnam set to be charged nearly 50 percent.

China, which will face a 54 percent tariff rate when the new levies are combined with existing duties, has vowed to take countermeasures.

Canada and the European Union are also preparing countermeasures, leading to concerns about a trade war that could fuel inflation and damage the global economy.

Most of the major sectors showed significant moves to the downside amid a broad based sell-off in reaction to the news.

Technology stocks turned in some of the market's worst performances, while energy stocks also saw substantial weakness amid a steep drop by the price of crude oil.

Meanwhile, consumer staples and telecom stocks were among the few groups that managed to buck the downward trend.