Canadian Stocks Slip From Record Peak Amid Tariff War

(RTTNews) - Canadian stocks pulled back on Tuesday as investors resorted to profit-taking with no fresh detail on a Canada-US trade agreement coming up to boost sentiment.

After opening nearly at yesterday's close, the benchmark S&P/TSX Composite Index hit an intra-day high of 27,239.48 within minutes.

However, it soon fell, travelled in the negative territory for the remainder of the trading session, and settled at 27,054.14, down by 144.71 (or 0.53 %).

Notably, yesterday the TSX had hit a new record high of 27,198.85.

On the data front, the annual inflation rate in Canada rose to 1.9% in June from 1.7% in May. While inflation has risen for durable goods, passenger vehicles, and furniture, it slowed for food and shelter.

The CPI Median increased to 3.10% in June from 3% in May. The trimmed-mean core CPI that the Bank of Canada considers for gauging inflation was unchanged at 3%.

The annual core inflation rate in Canada rose to 2.7% in June from 2.5% in May.

Consumer prices in Canada rose by 0.1% in June 2025.

Manufacturing sales declined by 0.9% to C$68.7 billion in May.

Economists are of the opinion that the central bank is likely to hold the interest rates steady this month in the backdrop of the above data.

Earlier last week, US President Donald Trump had pushed the "reciprocal tariff" suspension period from July 9 to August 1.

However, later that week, blaming the Canadian government for failing to contain illicit drug entry into the US via US-Canadian borders, Trump announced plans to hit Canada with 35% tariffs, an increase from the current 25% which includes exemptions.

Canada sells about three-quarters of its goods to the US.

Today, PM Mark Carney stated that Canada may have to accept some tariffs as part of a trade deal with the US.

Investors are of the opinion that a broader picture would emerge after the second week of August.

Major sectors that gained in today's trading were Utilities (0.33%), Communication Services (0.16%), and Healthcare (0.05%).

Among the individual stocks, Northland Power Inc (1.79%), AltaGas Ltd (1.34%), BCE Inc (0.98%), and Rogers Communications (0.77%). were the prominent gainers.

Major sectors that lost in today's trading were Consumer Discretionary (0.83%), IT (0.84%), Energy (0.94%), and Consumer Staples (1.36%).

Among the individual stocks, Canadian Tire Corp (0.03%), Sylogist Ltd (1.90%), Shopify Inc (1.31%), and George Weston Limited (2.08%) were the notable losers.

Energy Fuels Inc (10.62%), Brookfield Renewable Partners (2.20%), and Orla Mining Ltd (0.76%) were among the market-moving stocks today.