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Trump tariffs hit markets on Monday in early reaction to Canada-U.S. trade war

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U.S. stocks sank on Monday morning against the backdrop of a brewing trade war between Canada and the U.S., after president Donald Trump signed an executive order imposing a 25 per cent tariff on Canadian goods (10 per cent on oil) and Canada retaliated with its own tariffs.

Trump says he and Trudeau spoke this morning and have another call in the afternoon

A man in a suit looks at the camera.
President Donald Trump speaks to reporters in the Oval Office of the White House on Jan. 31. Global markets sank on Monday morning after Trump signed an executive order imposing a 25 per cent tariff on Canadian goods and Canada retaliated with its own tariffs. (Evan Vucci/The Associated Press)

U.S. stocks sank on Monday morning against the backdrop of a brewing trade war between Canada and the U.S., after President Donald Trump signed an executive order on Saturday imposing a 25 per cent tariff on Canadian goods (10 per cent on oil) and Canada retaliated with its own tariffs.

Opening market reaction in the U.S. saw the S&P 500 down 1.7 per cent, while the tech-centric Nasdaq composite tumbled 2.1 per cent. The Dow Jones Industrial Average fell 557 points in early trading.

The TSX was down 442.81 points. The Canadian dollar also fell to its lowest level against the U.S. dollar in more than two decades on Monday, trading at $68.13 US compared to $69.04 US on Friday afternoon.

Trump wrote on his Truth Social platform that he spoke with Prime Minister Justin Trudeau early Monday morning and had scheduled another call for later this afternoon.

More to come.

ABOUT THE AUTHOR

Jenna Benchetrit is the senior business writer for CBC News. She writes stories about Canadian economic and consumer issues, and has also recently covered U.S. politics. A Montrealer based in Toronto, Jenna holds a master’s degree in journalism from Toronto Metropolitan University. You can reach her at jenna.benchetrit@cbc.ca.

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