04:17 PM EDT, 04/14/2025 (MT Newswires) -- The Toronto Stock Exchange rose for a second session on Monday, continuing to recover from last's week's global tumble, as U.S. President Donald Trump again said may meddle again with his tariff schemes, this time to Canada's benefit, as reports said he is considering pausing his tariffs on the auto industry, which is an integral part of the Canadian economy.

The S&P/TSX Composite Index gained 278.73 points to close at 23,866.53. Among sectors, Base Metals and Telecoms were the biggest gainers, up 2.42% and 2.13% respectively.

On the tariffs front, the Associated Press reported Trump on Monday suggested he might temporarily exempt the auto industry from tariffs he previously imposed on the sector, to give carmakers time to adjust their supply chains.

"I'm looking at something to help some of the car companies with it," Trump told reporters gathered in the Oval Office. The Republican president said automakers needed time to relocate production from Canada, Mexico and other places, "And they need a little bit of time because they're going to make them here, but they need a little bit of time. So I'm talking about things like that."

AP noted that when Trump announced the 25% auto tariffs on March 27, he described them as "permanent", a move that threatened to hit the Canadian economy. The contribution to Canada's GDP from the automotive industry is more than $19 billion, with the vehicle and parts manufacturing sector contributing most of it at $16 billion.

This comes as market attention is already starting to switch to the release of Canadian inflation figures for March on Tuesday and a Wednesday interest-rate decision from the Bank of Canada Macquarie Bank is among those expecting the central bank to cut by 25 basis points given economic uncertainty amid Trump's trade war.

David Doyle, head of economics, said Macquarie's base case is for a 25 bps rate cut to 2.5% on the overnight rate, an outcome the market was pricing with only a near 33% chance as at the time he wrote his Monday note.

"Despite this," Doyle said, "we acknowledge the possibility of a pause this meeting given the mixed appetite for a cut in March that was apparent in the Summary of deliberations. As Governor Macklem has indicated previously, monetary policy is not well-equipped to deal with stagflation." Doyle noted a Monetary Policy Report (MPR) will also be released on Wednesday and include updated forecasts. Real GDP is likely to be marked downwards, while core CPI may see upward revisions, particularly for 2025, Doyle added.

Meanwhile, the chief executive of TMX Group ( TMXXF ) , the operator of the Toronto Stock Exchange, is recommending changes Canada's next federal government should make to lower barriers for companies looking to raise money.

In an interview with BNN Bloomberg Monday, John McKenzie said that even before the U.S. election, Canada had been facing declining competitiveness and productivity. He added that Canada lists more companies for public trading than many other nations, saying there is a great domestic ecosystem, "but we've got to make sure we're nurturing that". He said some barriers for companies raising money should be eliminated.

"The U.S. is going to work to make their marketplace more competitive, attract more industries and more jobs. So, we need to make sure the Canadian market is even more competitive to ensure we've got that home market advantage and that we're not just looking for ties, but we're looking to even be stronger than the U.S.," McKenzie said.

One of his recommendations is to allow Canadian companies to deduct the full capital costs of investments. A second recommendation McKenzie highlighted is to lower capital gains taxes on Canadian investments in domestic companies. McKenzie's third recommendation was making the Mineral Exploration Tax Credit (METC) permanent. Some of his other recommendations include expanding flow-through shares to other growth sectors, creating an investment friendly environment for major projects and providing equal access to innovation support.

Of commodities, gold edged down from a record high late afternoon Monday on profit taking and a rebounding appetite for U.S. treasuries after yields surged last week, even as the dollar fell to a three-year low. Gold for June delivery was last seen down $16.60 to US$3,228.00 per ounce.

But West Texas Intermediate crude oil closed with a small gain as Chinese imports surged last month and the U.S. dollar continued to weaken, even as the Organization of the Petroleum Exporting Countries cut its 2025 demand forecast amid expectations U.S. tariff policies will hamper growth. WTI crude oil for May delivery closed up $0.03 to settle at US$61.53 per barrel, while June Brent oil was last seen down $0.14 to US$64.62.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.