04:15 PM EDT, 07/28/2025 (MT Newswires) -- The Toronto Stock Exchange closed down from a record high on Monday amid some profit taking and as Canadian Prime Minister Mark Carney indicated a trade deal with the United States that does not include tariffs is unlikely to be reached, raising concerns around what level eventual levies might be set at.

The S&P/TSX Composite Index closed down 88.93 points to 27,405.42 with most sectors lower, led by the Battery Metals Index and Telecoms, both down about 1.5%. Energy was easily the biggest gainer, up 1.9%.

The United States agreed to trade deals that set a 15% tariff on most goods it trades with both the European Union and Japan respectively, but Canada is under the threat of 35% tariffs on exports if a deal with its North America neighbor and largest trading partner cannot be reached by an Aug. 1 deadline. Canada already faces U.S. levies on steel, aluminum, and automobiles, while new tariffs on copper are slated for introduction early next month.

Earlier Monday Prime Minister Mark Carney took questions on the fringes of a government event at which he indicated that a trade deal without tariffs was unlikely. Carney said "there is a landing zone that is possible" for Canada to reach in terms of agreeing the best possible deal.

Meanwhile, former White House official Larry Haas said the Canadian government has reason to be concerned. "The tone between the United States and Canada is a lot more negative than the tone seems to be between the United States and the E..U.," Haas said during an interview with CTV News on Sunday. "I think both countries ... are preparing for the very strong possibility that we're going to get tariffs."

According to Haas, the deadline could still shift, depending on economic signals. "Trump has backed away from other deadlines when it came to tariffs," he told CTV, before adding: "If we approach August 1 and these tariffs are looming, and the stock market all of a sudden becomes shaky, I could envision another extension."

While CTV noted that Canada has taken steps to respond to U.S. pressure, including boosting border inspections and cancelling a digital services tax, Haas noted the Canadian government faces a difficult negotiating environment. "President Trump respects strength as opposed to weakness," he said. "Canada needs to make clear to the United States that it's not going to take just any deal."

Of commodities, gold moved lower late afternoon on Monday as the dollar rose after a weekend trade agreement between the United States and the European Union calmed fears of a spreading global trade war, easing safe-haven demand. Gold for December delivery was last seen down $18.90 to US$3,373.60 per ounce, remaining off the July 22 record high of US$3,501.80 per ounce.

But West Texas Intermediate crude oil closed higher on the U.S. and Europe trade deal, with the Europeans agreeing to raise purchases of U.S. energy. WTI crude oil for September delivery closed up US$1.55 to settle at US$66.71 per barrel, while September Brent oil was last seen up US$1.52 to US$69.96.