The S&P/TSX Composite eased about 0.4% to below the 27,000 threshold on Friday, retreating from record highs after President Trump’s unexpected announcement of a 35% tariff on all non-USMCA Canadian imports, effective August 1st, reintroduced turmoil into both financials and export-reliant sectors. Canada’s major banks bore the brunt of the selling, with RBC, TD, BMO and Scotiabank each surrendering between 0.6% and 1%, while export-sensitive railroads Canadian Pacific and Canadian National each slid over 1%. Even a robust domestic backdrop, underscored by June’s labour report, in which 83,100 positions were added and the unemployment rate fell to 6.9%, dampening market bets on a July 30th Bank of Canada rate cut, proved insufficient to offset the trade-war headwinds weighing on equity risk appetite. For the week the Toronto exchange was poised for slight losses.