TORONTO — North American markets posted more losses Thursday, reversing some of what they gained in a rally the day before, after the White House said tariffs on China are even higher than previously announced at 145 per cent.

“We’ve only ever seen volatility this high in 2008 and 2020,” said Brian Madden, chief investment officer with First Avenue Investment Counsel.

Until it settles down somewhat, “we’re going to have a market that is tug-of-warring for direction,” he said.

The S&P/TSX composite index closed down 712.16 points at 23,014.87.

In New York, the Dow Jones industrial average was down 1,014.79 points at 39,593.66. The S&P 500 index was down 188.85 points at 5,268.05, while the Nasdaq composite was down 737.66 points at 16,387.31.

Markets soared Wednesday after Trump said he would pause some of the tariffs he announced last week, though he kept the 10 per cent baseline levy in place. But the U.S.’s trade war with China has been ramping up at the same time, and markets reversed course Thursday over concerns about the implications of the conflict on the economy.

“I think at this point investors are pretty exasperated and realizing, you know, you actually can’t believe a word the man says,” said Madden.

He noted that on both up and down days, the TSX’s moves have been a little less dramatic compared with U.S. markets, which he attributed to the Canadian index’s exposure to gold. Gold prices have been strong as investors seek a safe haven amid all the uncertainty.

The latest report on U.S. inflation came in better than expected Thursday, showing cooling price growth in March.

“On its own, that would have been dovish, and would have given the (U.S. Federal Reserve) cover to lower rates more quickly if it needed to,” said Madden.

But consumer and business sentiment has been rapidly deteriorating, and the effects of tariffs may start showing in the hard economic data soon, said Madden.

“A lot of it depends on how long the uncertainty persists,” he said, as it affects consumers and companies.

Friday will bring the kickoff of U.S. earnings season with several large financial names on tap to report results.

The companies’ forward-looking comments will be closely scrutinized, said Madden.

The Canadian dollar traded for 71.35 cents US compared with 70.67 cents US on Wednesday.

The May crude oil contract was down US$2.28 at US$60.07 per barrel and the May natural gas contract was down 26 cents US at US$3.56 per mmBTU.

The June gold contract was up US$98.10 at US$3,177.50 an ounce and the May copper contract was up 14 cents US at US$4.34 a pound.

— With files from The Associated Press

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This report by The Canadian Press was first published April 10, 2025.

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