TSX futures inch higher as investors gauge Trump auto tariff announcement

Investing.com - Futures tied to Canada’s main stock index pointed higher on Thursday as investors assessed reactions to U.S. President Donald Trump’s new automotive sector tariffs.

By 06:24 ET (10:24 GMT), the S&P/TSX 60 index standard futures had risen by 4 points or 0.3%.

The Toronto Stock Exchange’s S&P/TSX composite index closed down by 178.45 points or 0.7% on Wednesday, edging back from an almost one-month high notched at the end of the prior session.

Sentiment was dented by news that Trump was planning to announce the fresh levies on Wednesday afternoon.

Trump later said he aims to slap the tariffs on global automotive imports into the U.S. starting from April 3, following through on a prior pledge to place a trade tax on overseas car and truck manufacturers.

Speaking at the Oval Office, Trump added that the duties will apply to “all cars not made in the U.S." The statement appeared to exclude possible carve-outs for Canada and Mexico, two countries that play a pivotal role in the process of car construction and have a free-trade agreement with the U.S. that was signed during Trump’s first term in office.

Canadian Prime Minster Mark Carney said the move represented a direct attack on its workers, adding that officials in Ottawa would decide what actions they could take in response, including possible retaliatory countermeasures.

U.S. futures muted

U.S. stock index futures traded just above the flatline Thursday, as investors digested the news that the Trump administration will impose tariffs on automobile imports.

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At 06:33 ET, the Dow Jones futures contract rose 96 points, or 0.2%, S&P 500 futures gained 4 points, or 0.1%, and Nasdaq 100 futures were broadly unchanged.

The main Wall Street indices recorded a negative session on Wednesday, dragged down in part by technology stocks. Sentiment was hit by a report from analyst at TD Cowen which suggested that software giant Microsoft (NASDAQ:MSFT) may be dialing down some of its commitments to spending on data center infrastructure.

In premarket trading, shares in U.S. automakers dropped, with markets fretting over the impact of Trump’s tariffs on these companies, given that a bulk of them operate factories outside the U.S., especially in Mexico.

General Motors (NYSE:GM), Stellantis (NYSE:STLA) and Ford all traded sharply lower premarket, while U.S.-listed foreign automakers Toyota (NYSE:TM), Honda (NYSE:HMC) and Ferrari (NYSE:RACE) also fell.

Oil drops following Trump tariff announcement

Oil prices slipped back from a one-month high Thursday, after government data confirmed a hefty drop in U.S. crude inventories, signaling healthy demand for fuel in the world’s largest economy.

At 06:41 ET, Brent crude futures fell 0.2% to $72.94 a barrel and U.S. West Texas Intermediate crude dropped 0.2% to $69.53 per barrel.

Both benchmarks rose by around 1% Wednesday on government data showing U.S. crude oil inventories fell last week, dropping by 3.3 million barrels, exceeding analysts’ expectations of a 956,000-barrel reduction.

However, Trump’s auto tariff announcement weighed on oil prices, as traders weighed the impact of the measures on global economic activity.

Gold underpinned by safe-haven demand

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Gold prices rose in European trade on Thursday, buoyed by renewed safe haven demand after the latest escalation in Trump’s tariff agenda.

Goldman Sachs (NYSE:GS) also hiked its 2025 gold price target, forecasting solid central bank demand and strong inflows from exchange-traded funds.

Trump’s tariffs sparked a risk-off move across global markets, driving investors towards traditional safe-haven assets like gold.

Spot gold rose 1.1% to $3,053.54 an ounce, remaining in sight of a recent record high. Gold futures expiring in May added 1.3% to $3,092.49/oz by 06:47 ET.

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