Canadian stock index futures were little changed on Monday after the U.S. imposed 50% tariffs on roughly C$20 billion of Canadian exports, undermining a modest advance in the broader market on Friday.
Futures on the S&P/TSX 60 held flat at 2,147.00, while the S&P/TSX Composite closed 0.5% higher at 36,550.15 on Friday. The materials sector led gains, surging 2.7% as Ivanhoe Mines climbed 8.5%, Lithium Americas rose 6.4%, and Lundin Mining advanced 6%. The advance followed a 0.6% increase in domestic retail sales for June, though the benchmark index fell 0.49% for the week ended Friday.
The trade dispute escalated after U.S. President Donald Trump enacted the tariffs on Saturday following the collapse of high-stakes negotiations in Washington. The measures target a range of Canadian goods, including agricultural and industrial products, and follow U.S. demands related to auto manufacturing and foreign trade policy that Canadian negotiators rejected over the weekend.
Canada’s Prime Minister Mark Carney described the U.S. tariffs as a direct attack and announced plans for "dollar-for-dollar" retaliatory measures targeting American steel, dairy, and manufacturing exports. The Canadian counter-tariffs are scheduled to take effect on September 8.
The trade friction overshadows the upcoming earnings season for Canada’s "Big Six" banks, which begin reporting quarterly results on Tuesday. Investors will scrutinize loan-loss provisions and credit quality for signs of strain from the trade dispute. The U.S. absorbs more than 70% of Canada’s exports, amplifying the impact of the tariffs on the domestic economy.
