Canadian Market Remains Weak On Tariff Concerns

(RTTNews) - After a weak start and a subsequent drop to lower levels, the Canadian market continues to languish in negative territory a little past noon on Friday, weighed down by losses in healthcare, technology, financials and consumer sectors.

Energy and materials stocks are gaining some ground thanks to firm commodity prices.

The mood is cautious amid escalating trade war fears following U.S. President Donald Trump announced a 35% tariff on all non-USMCA Canadian imports, effective August 1.

Trump, who warned of a blanket tariff of 15-20% on most trading partners that haven't got letters yet, also said he would make an announcement regarding Russia, raising the prospect of more sanctions on the major oil producer.

Investors are also digesting the latest batch of Canadian economic data.

The benchmark S&P/TSX Composite Index, which dropped to 26,928. was down 127.25 points or 0.47% at 26,955.05 a few minutes past noon.

Interfor Corp, Canopy Growth Corp., Ivanhoe Mines, HudBay Minerals, Tilray, Lundin Mining and Bausch Health Companies are down 3 to 4%.

Enghouse Systems, Teck Resources, Ballard Power Systems, TFI International, Open Text Corporation, Spin Master, West Fraser Timber, Magna International, Methanex, Air Canada, BRP and BlackBerry are also down sharply.

Silvercorp Metals is rising nearly 6%. Canada Goose Holdings, Equinox Gold, TransAlta, Pan American Silver Corp., First Majestic Silver, Osisko Gold Royalties, Wesdome Gold Mines, MAG Silver, Imperial Oil, Fortuna Silver Mines, Alamos Gold and Eldorado Gold are gaining 2 to 4.3%.

On the economic front, data from Statistics Canada showed employment in Canada increased by 83,100 in June. The unemployment rate in Canada decreased to 6.9% in June from 7% in May.

Average hourly earnings in Canada increased to C$ 37.22 in June of 2025 over the previous month.

A separate data from Statistics Canada showed building permits in Canada increased to 12% in May from -6.8% in April of 2025.