Market Uncertainty Remains as Trade War Risks Mount

While analysts see China’s retaliation as measured, the risk of further escalation looms large. U.S. stock futures and commodities also took a hit, with NASDAQ 100 futures down 1.7%, crude oil falling 1.74%, and natural gas plunging 2%.

Canadian Prime Minister Justin Trudeau confirmed that the U.S. is pausing tariffs on Canadian goods for at least 30 days after a call with President Trump on Monday.

“I just had a good call with President Trump,” Trudeau wrote on X, adding that both nations are working on solutions.

As part of the agreement, Canada will roll out a $1.3 billion border plan, reinforcing security with helicopters, advanced technology, and additional personnel to curb the flow of fentanyl.

The move follows a similar one between the U.S. and Mexico earlier in the day. President Trump had announced a delay in tariffs on Mexico after a pledge from Mexico’s President to deploy 10,000 to the border to combat illegal migration.

Market participants had been anticipating that Canada would negotiate similar terms and Trudeau’s statement confirmed those expectations.

“Proposed tariffs will be paused for at least 30 days while we work together,” he wrote