Bay Street Seen Opening With Negative Bias

(RTTNews) - Canadian shares may open with a negative bias Tuesday morning as trade war heats up with Canada retaliating with tariffs on over $1 billion worth of US imports within hours of U.S. President Donald Trump's announcement that tariffs on goods and Canada and Mexico will become effective today.

Ontario Premier Doug Ford has threatened that power supply to the United States will be curbed in retaliation for the new tariffs. Canada is a major exporter of electricity to th U.S.

Announcing his decision that will trigger a fresh round of trade war between the United States and its major trade partners, Trump said he is proceeding with implementing tariffs on Canada and Mexico under the International Emergency Economic Powers Act "to combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking."

In Canadian earnings news, Wajax (WJX.TO) reported fourth quarter net earnings of C$1.0 million, or C$0.05 per share, compared to C$11.1 million, or C$0.52 per share.

Enbridge (ENB.TO) reaffirmed 2025 full year financial guidance of adjusted EBITDA of C$19.4-C$20.0 billion, and DCF per share of C$5.50-C$5.90. Also, the company reaffirmed financial outlook for EBITDA of 7-9% average annual growth through 2026 and average annual DCF per share and EPS growth outlooks of 3% and 4-6%, respectively, through 2026.

Pet Valu Holdings (PET.TO) reported fourth-quarter revenue of $295.1 million, up 2.9% compared to $286.9 million a year ago.

The Canadian market ended sharply lower on Monday due to heavy selling in energy and technology sectors. Stocks from materials, industrials and consumer discretionary sectors were the other major losers.

The mood remained bearish on Bay Street as U.S. President Donald Trump confirmed that the 25% tariffs on Canad and Mexico will take effect Tuesday. Data showing a sharp contraction in Canadian manufacturing activity in the month of February weighed as well on investor sentiment.

The benchmark S&P/TSX Composite Index closed down 391.88 points or 1.54% at 25,001.57. The index dropped to a low of 24,885.70 in the final hour, before staging a modest recovery from that level.

Asian stocks ended mostly lower on Tuesday as fresh U.S. tariffs came into effect. While Canada vowed retaliatory 25 percent tariffs on C$155 billion ($107 billion) of U.S. goods, China said it would impose additional tariffs of 10-15 percent on several agricultural goods, including soybeans, corn, dairy and beef.

European stocks are sharply lower due to heavy selling across the board amid mounting worries about global economic growth following the implementation of new tariffs by U.S. on Canada, Mexico and China, and the retaliatory moves by Canada and China.

In commodities, West Texas Intermediate Crude oil futures are down $0.82 or 1.2% at $67.55 a barrel.

Gold futures are up $34.50 or 1.2% at $2,935.60 an ounce, while Silver futures are gaining $0.190 or 0.59% at $32.500 an ounce.