07:51 AM EST, 02/03/2025 (MT Newswires) -- The Canadian equity market could decline 5% as a result of the Trump administration's tariffs, CIBC Capital Markets said on Monday.

"If, as we expect, these tariffs remain in place for some period, we would not be surprised to see a 5% correction in Canadian equities," said Ian de Verteuil, CIBC's head of portfolio strategy.

"Some of the effect on the economy might be mitigated by a weaker Canadian dollar," he said.

"We do not believe equity investors have incorporated much risk of meaningful tariff action against Canada," de Verteuil said in a note to clients.