Markets slid after Trump threatened 100% tariffs on US$2.4 billion worth of goods against France. This came right after he slapped steel and aluminum tariffs of Brazil and Argentina. Meanwhile, tariffs stand at the centre of U.S.-China trade negotiations, and the North American trade deal with Canada still needs to become official.
On Tuesday, all New York indices plunged well over 1% with the Down sinking 1.45%. By threatening France, Trump is really confronting the EU. The EU immediately vowed to retaliate, stung by actions from what it considers a long-time ally. The news overshadowed events at Alphabet where Google founders Larry Page and Sergey Brin stepped down to hand control of both entities to CEO Sundar Pichai. Alphabet ticked up 0.42%.
In Canada, the TSX fared better than New York, losing 0.53% by the Tuesday close. However, at the start of earnings season for Canadian banks, BMO announced its deepest job cuts in years, shedding about 5% of its workforce or 2,300 workers. BMO shares fell nearly 2% at Tuesday’s open and closed down 2.12% by the close. It does not bode well for the bank, with some suspecting disappointing earnings to come.