Global Trade War Fears Weigh on Canadian Markets as Auto Tariffs Loom

Canadian equities are expected to open lower on Monday, tracking a broader global sell-off driven by concerns over U.S. trade policy. The market is reacting to President Donald Trump's announcement of a 25% tariff on automotive imports and the prospect of reciprocal tariffs targeting all nations starting April 2. The S&P/TSX Composite Index suffered a significant blow on Friday, plummeting 401.91 points, or 1.6%, to close at 24,759.15. This decline was exacerbated by lukewarm GDP data and warnings from Prime Minister Carney regarding potential retaliatory actions against the U.S. Fears are mounting that these protectionist measures will fuel inflation, force interest rates to remain elevated, and stifle global economic growth. While technology, healthcare, and consumer discretionary sectors led Friday's losses, energy and materials may find support due to rising commodity prices. Commodity markets showed resilience amid the volatility. West Texas Intermediate crude oil futures rose 0.37% to $69.61 per barrel, while gold climbed 1.18% to $3,151.20 an ounce. Silver futures also saw a slight gain, trading at $34.885. In corporate developments, Westport Fuel Systems Inc. (WPRT.TO) announced a binding agreement to sell its interest in Westport Fuel Systems Italia, including its light-duty segment, for a base purchase price of $73.1 million.