Feb 11 (Reuters) - Canada's main stock index fell on Tuesday, dragged by mining shares following new U.S. tariffs on steel and aluminum, while Shopify's dour profit outlook weighed on technology shares.
The S&P/TSX composite index (.GSPTSE), was down 0.55% at 25,512.38.
U.S. President Donald Trump raised tariffs on steel and aluminum imports on Monday to a flat 25% without exceptions, risking escalation in global trade war, while also promising to announce global reciprocal tariffs this week.
Canadian Prime Minister Justin Trudeau called the latest tariffs "unacceptable" and stated that Canada would firmly respond if necessary.
"Canada exports a lot of steel, aluminum to the United States, so this is sort of another reescalation of the trade and tariff wars that flared up a week or 10 days ago," said Brian Madden, chief investment officer at First Avenue Investment Counsel.
A majority of sub-sectors on the index fell, with materials (.GSPTTMT), losing 1.3% on worries about a lower metal demand outlook triggered by latest tariffs.
Shopify (SHOP.TO), fell 4% after a downbeat first-quarter profit outlook spooked investors, despite strong holiday-quarter sales. The stock dragged the information technology (.SPTTTK), sector 1.7% lower.
Energy (.SPTTEN), was a standout, adding 0.7%, continuing its gains from the previous session as oil prices rose amid worries over Russian and Iranian oil supply due to sanction threats.
Investors digested U.S. Federal Reserve Chair Jerome Powell's testimony where he said the central bank is in no rush to cut its short-term interest rate again given an economy that is "strong overall", in remarks prepared for a Senate Banking Committee hearing.
with the Dow gaining almost four-tenths of a percent,
Market focus was also on U.S. inflation data, which is due on Wednesday.
Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore
