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Markets Spiral on Tariff Shock

US markets appear locked in a downward spiral on Monday, marking a third consecutive trading day of steep losses fueled by President Donald Trump’s surprise implementation of high tariffs on key trading partners.

The Dow Jones Industrial Average shed over 1,000 points in early trading, while the S&P 500 slumped more than 2%, briefly plunging the benchmark index into bear market territory. The tech-heavy Nasdaq Composite lost nearly 2%, weighed down by investors unloading high-performing technology stocks to cover margin calls.

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What’s going on?

• Trump Gives TikTok 75-Day Extension After Tariffs Derail Deal (theDeepDive)

• Liberals’ lead over Conservatives narrows further as ‘more of a horse race emerges’: Nanos tracking (CTV)

• Trump Orders New Review of Nippon-U.S. Steel Merger (WSJ)

• Tariff Negotiations Are Reportedly Underway… But Are They? (theDeepDive)

• Ontario to provide about $11-billion in relief to businesses stung by U.S. tariffs (Globe)

• Musk and OpenAI jury trial to begin in spring next year (Reuters)

• Jaguar Land Rover Halts US Shipments Following Trump’s 25% Auto Tariff (theDeepDive)

• Trump threatens additional 50% tariff on China (FT)

• Major IPOs Shelved as Trump’s Tariff Announcement Rattles Markets (theDeepDive)

• NDP plan $16-billion fund to help provinces, cities build three million homes by 2030 (Globe)

What’s the latest?

• Trade War: The U.S. plans to more than double its duties on Canadian softwood lumber from 14.4% to 34.45%, according to a U.S. Commerce Department memo. This move comes ahead of possible additional tariffs from President Trump, who has launched a national security probe into wood imports. The increase could significantly impact U.S. housing costs, as a 2x4 currently sells for US$2.11, down from over US$10 in 2022, despite rising production costs. The duties affect major Canadian lumber producers in British Columbia and Quebec, where officials warn of serious consequences for both Canadian workers and U.S. homebuyers.

• TSX: Canadian and U.S. stock markets plunged Monday following last week's sweeping global tariff announcement by President Donald Trump. The S&P/TSX dropped 550.75 points to 22,642.72, while the Dow fell 885.99 points, the S&P 500 lost 88.55 points, and the Nasdaq slid 302.85 points. The market briefly surged earlier in the day before falling again after the White House dismissed rumors of a tariff pause. Meanwhile, crude oil dropped to US$60.37, gold to US$3,000.90, and copper to US$4.23 per pound, as fears of recession and inflation intensified.

• Economics: Business and consumer sentiment in Canada declined sharply in Q1, according to two Bank of Canada surveys. 32% of firms now expect a recession within a year, up from 15% in the previous two quarters. Only 43% expect sales growth, and just 31% plan to invest in machinery, down from 48% last quarter. On the consumer side, spending intentions fell for the first time since early 2024, and job security concerns are rising, especially in trade-dependent sectors, as tariff-related uncertainty weighs on economic outlooks.

• Business: A US$1.1 billion loan sale led by Bank of Montreal to fund HIG Capital’s purchase of Converge Technology Solutions has been postponed due to weak investor demand. The sale, tied to the planned merger of Converge and Mainline Information Systems, was originally set to close April 1. This marks the seventh U.S. leveraged-loan deal pulled from syndication in 2025, amid growing recession fears from President Trump’s tariffs. Leveraged loan prices have dropped to 95 cents on the dollar, the lowest since November 2023, reflecting broad investor retreat from risk.

• Geopolitics: China has condemned the U.S. for imposing additional tariffs, calling the actions “economic bullying” and urging American companies like Tesla to help de-escalate tensions. President Trump last week imposed a 34% tariff on Chinese goods, following two earlier rounds of 10% tariffs in February and March. China responded with its own 34% retaliatory tariffs, suspended some U.S. imports (e.g., poultry, sorghum), tightened rare earth exports, and filed a WTO complaint. Despite a 13.2% drop in Hong Kong’s stock market, Chinese officials emphasized economic stability and openness to foreign investment, calling the U.S. approach a threat to global supply chains.

Toronto Condo Crash

The stock market and stuff

• New Gold Spends $300 Million To Consolidate New Afton Mine Ownership (theDeepDive)

• North American stock markets continue to drop in volatile trading as global tariff turmoil persists (Globe)

• Crypto Venture Capital Activity Slow to Catch Up to Friendlier US Environment (Bloomberg)

• Strategy To Take $5.9 Billion Loss On Bitcoin Holdings In Q1 (theDeepDive)

In the juniors

• Kinross Gold To Take 9.9% Stake In Eminent Gold (theDeepDive)

• enCore Energy Boosts Alta Mesa Production Rate To 1,900 Lbs Per Day In March (theDeepDive)

• ESGold: Coming Production From A Fully Permitted Clean Up Project (theDeepDive)

• Wesdome Gold To Acquire Angus Gold For 59% Premium In Cash And Stock (theDeepDive)

FULL DISCLOSURE: Golden Cariboo Resources is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is long the equity of Golden Cariboo Resources. The author has been compensated to cover Golden Cariboo Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.