The Toronto Stock Exchange, which opened in the red this morning, has shed its losses and is up 108 points at midday with info tech and industrials the biggest gainers.

Telecoms, down 2% is the biggest decliner with BCE down 4% on last look. Rogers, which this morning announced a new 12-year deal with the NHL, is down just 0.4%.

U.S. President Donald Trump is set to announce sweeping reciprocal tariffs this afternoon. BMO Economics notes the White House has signalled tariff plans would come into effect immediately, though the President has previously suggested he would be open to subsequent negotiations.

According to Rosenberg Research, "nothing matters more today" than the tariff announcement this afternoon as it "promises to wreak havoc" on this US$33 trillion "beast" called global cross-border trade. While this is now being dubbed as an effort to 'Make America Wealthy Again', the cost for the world at large will be US$1.4 trillion of lost GDP, the research said. "Nobody wins in a trade war -- wash, rinse, repeat. The United States wins but in a race to the bottom," the research added.

For its part, Scotiabank noted trade advisers are indicating that Canada's retaliation will remain less than dollar-for-dollar in nature, as it has been to date, despite the incorrect political labelling, and steer clear of things like food that could cause greater price hikes in Canada. Scotia said the loose reference to 250% tariffs on Tesla vehicles implies a willingness to basically have import bans on products that are the most impactful to Trump's inner circle and his base. The impact of such a move on Canadians would be minor given Tesla's 1,400 workers in Canada and alternatives. Scotia noted it's also unclear what other retaliatory mechanisms are possible, perhaps because we don't even know what the Trump administration will do. It said a weak response by new PM Mark Carney could play unfavourably in the polls given that trade tensions have been a major part of the reason why support for his governing Liberals has surged in recent weeks.

Of note, Prime Minister Mark Carney spoke with Mexican President Claudia Sheinbaum on Tuesday about Canada's plan to "fight unjustified trade actions" by the United States, the prime minister's office said, as reported by Reuters. "With challenging times ahead, Prime Minister Carney and President Sheinbaum emphasized the importance of safeguarding North American competitiveness while respecting the sovereignty of each nation," Carney's office said in a statement.

Among individual stocks, BlackBerry (BB.TO) was down more than 8%, despite reporting higher fourth-quarter adjusted profit that beat forecasts. Blackberry reported adjusted net income climbed to US$17.7 million, or US$0.03 per share for its fourth quarter, from US$16.4 million, or US$0.03 per share in the prior year period. The result beat analysts' expectations of US$ nil per share, according to FactSet. Revenue fell to US$142 million from $153 million.

Blackberry was last seen down 7.5% in New York trading, after declining 20% in U.S, premarket trade on its outlook. According to The Wall Street Journal, the stock was headed for a seventh-straight loss, which would be the longest losing streak since the eight-day stretch that ended Oct. 9, 2023. It was also at one point on track for the biggest one-day selloff since it plunged 17.5% on Jan. 24, 2024.