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Investing.com -- Canada’s main stock index futures pointed to a continued fall in trading on Friday following its worst day since June 2020. Investors have sold-off since the U.S. President Donald Trump’s announcement of a raft of new tariffs on Wednesday, with many seeing an all-out trade war and global recession on the horizon.

By 8:30 ET, S&P/TSX 60 Futures pointed to a 2.74% decline, with a premarket fall of 40 points.

In Thursday’s trading, the S&P/TSX 60 index slid by 57.7 points or 3.8%.

The Toronto Stock Exchange’s S&P/TSX Composite index finished Thursday down 971.4 points or 3.8%, the largest fall for the index since June 2020, during the market panic caused by the Covid-19 pandemic.

The news of the day was China’s announcement of a 34% tariff on all imports from the U.S., effective April 10.

Trump announced his broadest slate of tariffs to date on Wednesday, saying he would slap a baseline 10% duty on all foreign imports into the U.S. and impose greater levies on several longstanding trading partners in a bid to respond to perceived unfair trade practices.

The broad tariffs take effect on April 5, with the country-specific hikes starting April 9.

On Thursday, while the markets plunged in response to the tariff announcements, Trump doubled down, saying “I think it’s going very well.”

Trump had previously rolled out a string of other tariffs that are now in effect, including a 25% import levy on goods from Mexico and Canada not deemed to be in compliance with the U.S.-Mexico-Canada Agreement -- a trade accord signed during Trump’s first term. Energy products and potash received a 10% tariff. Neither country will be subject to any new tariffs beyond these.

A 25% tariff on Canadian steel and aluminum also remains in place.

In response, Canada Prime Minister Mark Carney declared on Thursday that Canada is implementing 25% tariffs on all vehicles and non-Canadian vehicle content imported from the U.S. that are not compliant with the CUSMA (USMCA) trade pact. Carney alleged that total funds raised from Canada’s tariffs could reach CAD$8 billion, and all funds will go to the autoworkers and companies affected.

U.S. stock futures fall after worst day since 2020

U.S. stock index futures also pointed to a decline, following a sharp drop on Thursday after Trump announced his comprehensive trade tariffs.

U.S. stocks, in turn, had their worst day since June 2020, when Covid-19 concerns sent markets spiraling.

By 8:30 ET, Nasdaq 100 Futures signaled a 2.9% decline, S&P 500 Futures indicated a 2.8% fall, and Dow Jones Futures pointed to a 2.9% decrease.

In Thursday’s trading, the S&P 500 fell 274.4 points, or 4.8%, its worst day since 2020. The NASDAQ Composite slumped 1,050.4 points, or 6% on the day, also suffering its worst loss since 2020. Additionally, the Dow Jones Industrial Average declined by 1,679.5 points, or 4%.

In turn, JPMorgan (NYSE:JPM) has raised the probability of a global recession this year to 60%, driven by the economic shock stemming from a sweeping U.S. tariff hike announced on Liberation Day.

These tariff policies could see U.S. gross domestic product take a 10% hit in the second quarter of 2025, High Frequency Economics Chief Economist Carl Weinberg said in a note Thursday, potentially pushing the world’s largest economy into a recession after a predicted small contraction in the first quarter.

Weinberg estimated that tariffs would take $741 billion out of U.S. household real incomes or corporate profits, or more if fully accounting for all tariffs on aluminum, steel and non-exempt trade with Canada and Mexico.

Crude Oil WTI Futures prices plummet

Oil prices slid sharply on Friday, with the tariffs raising concerns over the prospects for global fuel demand.

At 8:50 ET, Brent Oil Futures dropped by 6.6% to $65.48 a barrel, after suffering its biggest daily percentage decline since March 5 on Thursday.

U.S. West Texas Intermediate crude futures fell 7.2% to $62.08 a barrel.

Gold eases from record highs

Gold prices fell on Friday after hitting yet another record high on Thursday.

Trump’s tariffs sparked a severe risk-off move in broader financial markets, underpinning a flight to the perceived safety of assets like gold and the Japanese yen. Gold also benefited from a decline in the dollar.

As of 8:50 ET, XAU/USD was down 1.3% and Gold Futures fell 0.9%, pricing in at $3,073.86 and $3,093.26, respectively.

In Thursday’s trading, Spot gold hit a record high of $3,168.04 an ounce, while gold futures expiring in June hit a peak of $3,201.60/oz.

(Scott Kanowsky also contributed to this article)

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