Canadian stock futures remained little changed on Monday after a late-week rally in Toronto-listed shares was erased by the implementation of new U.S. tariffs over the weekend.
Standard futures on the S&P/TSX 60 Index traded flat at 2,147.00, while the spot S&P/TSX Composite Index closed Friday at 36,550.15, up 0.5% for the session. The materials sector led gains with a 2.7% advance, driven by gains in Ivanhoe Mines (8.5%), Lithium Americas (6.4%) and Lundin Mining (6%). Domestic retail sales rose 0.6% in June, though the broader TSX ended the prior week down 0.49%.
The U.S. enacted 50% tariffs on Canadian exports on Saturday, targeting sectors including auto manufacturing, agriculture and industrial materials. Canada sends over 70% of its exports to the U.S., with an estimated $20 billion in annual shipments now subject to the new duties. Prime Minister Mark Carney described the move as a "direct attack" and pledged dollar-for-dollar retaliatory tariffs targeting American steel, dairy and manufacturing exports, set to take effect on September 8.
The tariff escalation follows the collapse of negotiations in Washington and coincides with the start of earnings season for Canada’s "Big Six" banks on Tuesday. The weekend developments overshadowed Friday’s gains and left investors assessing the broader economic impact amid elevated trade tensions.
