04:23 PM EDT, 03/27/2025 (MT Newswires) -- The Toronto Stock Exchange closed flat on Thursday with investors "pre-occupied" with tariffs, trying to understand the implications of those already imposed on Canada by the United States and awaiting news of more levies to come next week.

The S&P/TSX Composite Index closed unchanged at 25,161.06. On sectors, Health Care, up 2.28%, and Telecoms, up 1.27%, led gains, but most sectors are lower, led by Information Technology, which dropped 1.09%.

Among auto-related stocks most likely to be hurt by Trump's move, Magna International ( MGA ) was down 6.9%, Linamar ( LIMAF ) was down 2.7% and Martinrea International ( MRETF ) was down 2.9%.

According to Thierry Wizman, Global FX & Rates Strategist at Macquarie, there is "no doubt" that just as yesterday's market session was dominated by worries about tariffs, today's session and the sessions until April 2, when Trump is expected to roll out tariffs tailored to the United States' trading partners, will see traders pre-occupied with tariffs.

"Not surprisingly," Wizman said, "the tariff talk is resulting in another round of risk-off, for stocks but also for FX, as traders try to ascertain the implications, but generally conclude that tariffs will be both growth-restraining and inflation-producing. And certainly, that will be the conclusion from the Fed too."

Wizman's colleague at Macquarie, David Doyle, in a separate note noted Trump announced a 25% tariff on autos as of April 2 and auto parts by May 3 at the latest. Doyle noted the tariff rate is incremental and is in addition to any preexisting duties. "This will impact most significantly trade with Mexico, Canada, Korea, Japan, and the EU," he said.

Doyle said while full details were not available as he wrote his note, Macquarie estimated the move could impact near US$306 billion of imports, or near 9.5% of total imports and near 1% of GDP. He noted there are likely to be further tariffs announced on April 2.

"While there remains considerable uncertainty on what may be released on this front, our rough approximation is that most major trade partners could see reciprocal tariffs in the 10% to 25% range. This is based on their current average tariff rates plus value added taxes. Tariffs and related uncertainty are contributing to a challenging growth environment and firmer inflation, topics our team highlighted in our recent Global Economic Outlook Update," Doyle added.

Unsurprisingly, tariff concerns are also beginning to dominate Canada's politics in the midst of the federal election campaign. Ontario Premier Doug Ford spoke to media in Toronto on Thursday afternoon. Premier Ford, during a media scrum broadcast on Canada's CBC TV, said he spoke about the auto tariffs with US Commerce Secretary, Howard Lutnick, last night for about 25 minutes. He cited Lutnick as saying autos composed of 50% U.S. parts will face a lower tariff of 12.5%, not 25%. Premier Ford, who plans to meet with the chief executives at the US-based big auto companies tomorrow, also said Lutnick reassured him there would be no plant closures. But he added: "I don't believe it" when asked how true it is when Lutnick talks about no plant closures. Ford noted it's not secretary Lutnick's choice on opening or closing plants, it is that of the auto-company CEOs.

Meanwhile, Canadian Prime Minister Mark Carney during a separate media broadcast revealed that President Trump had reached out to him to talk. Carney said the conversation is likely to happen soon, "certainly in the next day or two." On the brewing trade war between the two nations, Carney said "nothing is off the table" it terms to defending the Canadian economy. We Won't Back Down".

"The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over," Carney said.

Of commodities today, gold climbed to another record high late afternoon as the dollar weakened. Gold for June delivery was last seen up $46.40 to US$3,098.70 per ounce, rising above Tuesday's record close of US$3,044.00.

Oil prices were steady late afternoon on Thursday on an uncertain economic outlook after U.S. President Donald Trump ratcheted up his trade wars with a promise to impose 25% tariffs on autos imported into the United States.

West Texas Intermediate crude for May delivery was last seen up US$0.15 to US$69.80 per barrel, while May Brent crude was up US$0.14 to US$73.93.

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