Canadian Stocks Rebound From 800-Point Plunge but Stay Lower on U.S. Tariffs

Canada's benchmark index remained in negative territory after an early plunge of nearly 800 points, as the Trump administration imposed 25% tariffs on Canadian imports effective February 1. The index was down 213.44 points, or 0.84%, at 25,319.66. Energy imports are exempt from the 25% levy and face a 10% tariff. Outgoing Prime Minister Justin Trudeau said Canada would retaliate with 25% tariffs on more than $105 billion of U.S. goods; Mexico and China also vowed countermeasures, though the Mexico imposition was postponed by a month. Industrials, consumer discretionary and financials led losses. Goeasy (GSY.TO), BRP (DOO.TO), Magna (MG.TO), CIBC (CM.TO) and Canadian National Railway (CNR.TO) fell 4% to 8.5%. Metal stocks gained on safe-haven demand, with Equinox Gold (EQX.TO) up 10%. The S&P Global Canada Manufacturing PMI fell to 51.6 in January from 52.2, its fifth straight monthly decline.