TSX Lower as Trump Tariff Threats Reappear

Canada's main stock index opened lower on Friday, tracking global peers, amid renewed trade tensions sparked by U.S. President Donald Trump's recommendation of 50% tariffs on European Union imports.The TSX Composite Index drifted lower 47.53 points to 25,806.48. The Canadian dollar was up 0.39 to 72.55 cents U.S. The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill on Thursday, raising concerns about worsening fiscal outlook in the world's biggest economy. The bill now heads to the Senate for approval.Also on Thursday, Bank of Canada Governor Tiff Macklem said he expected second-quarter growth to be "quite a bit weaker" than the first quarter, and that it could be worse in subsequent quarters if the uncertainty around U.S. tariffs continued.The central bank last month forecast annualized first-quarter GDP would be 1.8% but did not give any other projections, citing uncertainty over U.S. tariff policy.The official numbers are due out next Friday, a week before the Bank of Canada gives its interest rate decision. On the economic slate, Statistics Canada reports retail sales increased 0.8% to $69.8 billion in March. Sales were up in six of nine subsectors and were led by increases at motor vehicle and parts dealers.ON BAYSTREET The TSX Venture Exchange slid 1.55 points to 677.Eight of the 12 subgroups were lower in the first hour, as telecoms scaled back 1.1%, information technology and health-care each fell 1%. The four gainers were led by gold, better by 0.8%, materials, improving 0.5%, and consumer staples, inching higher 0.3%. ON WALLSTREET Stocks declined Friday after President Donald Trump ramped up his trade fight again, slapping a tariff on Apple for foreign-made iPhones and recommending new stiffer duties on the European Union.The Dow Jones Industrials blundered 361.88 points to 41,497.21.The S&P 500 dipped 55.88 points to 5,786.13The NASDAQ Composite flopped 203.02 points, or 1.1%, to 18,722.71. Apple shares shed more than 2% after Trump posted on Truth Social that iPhones sold in the U.S. must be made in the U.S. and if they are not “a tariff of at least 25% must be paid by Apple.” The move against Apple by Trump is the first against a specific company in his tariff rollout this year.Micron slumped 2.5% and Qualcomm declined 3.3%. Nvidia shares lost 1%.Friday’s declines added to the market’s weekly losses. The S&P 500, Dow and NASDAQ are all down more than 2% this week.Separately, the president said trade discussions with the EU “are going nowhere” and so he’s “recommending a straight 50% tariff on the European Union, starting on June 1, 2025.”Trump’s actions come at a time when tariff tensions were easing. Trump in April implemented duties on most nations in the world, which rattled the stock market and nearly put the S&P 500 in a bear market. The president then paused the stiffest tariffs for 90 days and hatched some preliminary agreements with the U.K. and China, causing stocks to recover. The S&P 500 got back to even on the year last week.Prices for the 10-year Treasury were higher in the early stages of Friday, lowering yields to 4.52% from Thursday’s 4.54%. Treasury prices and yields move in opposite directions. Oil prices regained 43 cents to $61.63 U.S. a barrel. Prices for gold revived $49.80 to $3,344.80.