Feb 3 (Reuters) - Futures for Canada's main stock index fell sharply on Monday, part of a global market selloff after U.S. President Donald Trump announced tariffs on Canada, Mexico and China, starting on Tuesday.
March futures on the S&P/TSX index were down 1.3% at 6:50 a.m. ET (1150 GMT). Futures for Wall Street's S&P 500 also dropped 1.3%.
Trump slapped a 25% import tariff on all Canadian goods except energy products, which will carry a levy of 10%.
Canada's Prime Minister Justin Trudeau immediately announced retaliatory tariffs on C$155 billion ($107 billion) of U.S. goods.
Those on C$30 billion worth of goods will take effect on Tuesday, the same day as most of Trump's tariffs, and duties on the remaining will take effect in 21 days, Trudeau said.
The developments compelled global investors to buy U.S. dollars and dump equities as they remained worried that the tariffs could fuel inflation, keeping interest rates higher for longer.
In commodities, oil prices , rose on fears of supply disruption after the new tariffs, though gains were capped by concern over what could be an economically damaging trade war.
Gold prices erased early losses to remain close to record highs on safe-haven demand. Copper prices hit a four-week low on worries that the tariffs would hurt growth and demand.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), fell on Friday, anticipating the start of U.S. trade tariffs, retreating from a record closing high the previous day.
In corporate news, Brookfield Asset Management (BAM.TO), announced that it has completed the acquisition of electric heat trace systems maker Chemelex from nVent Electric Plc for $1.7 billion.
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