Canada US Stocks Fall on Trump Tariffs, Hiring Slowdown

Global and Canadian stock markets saw significant declines following U.S. President Donald Trump's decision to raise tariffs on Canada and dozens of other countries. The new tariffs, effective August 7, range from 10% to 41%, with Canadian imports facing an increased levy of 35% from the previous 25%, intensifying trade tensions despite ongoing negotiations. The U.S. stock market experienced its worst day since May, driven by concerns over a slowing economy highlighted by weak July jobs data and the tariff announcements, with major indices like the S&P 500 and Nasdaq declining substantially. Canadian markets mirrored this trend, with the S&P/TSX Composite Index falling nearly 1%, led by losses in technology and finance sectors, while gold prices rose amid safe-haven demand. Investors are increasingly worried about the impact of these tariffs on trade relations and economic growth, especially with the U.S.-Mexico-Canada Agreement up for renegotiation in 2026. Despite these challenges, some Canadian companies like MDA Space saw gains due to new contract announcements, underscoring a mixed market environment amid geopolitical and economic uncertainties.