04:25 PM EST, 02/25/2025 (MT Newswires) -- The Toronto Stock Exchange rose for a second-straight session on Tuesday despite continuing concerns over the Trump Administration's plans to launch a trade war with Canada and Mexico.

The S&P/TSX Composite Index closed up 52.72 points to 25,203.98. Battery Metals, up 1.32%, and Telecoms, up 0.47%, led gainers, while Energy, down 1.64%, and Information Technology, down 1.18%, posted the biggest losses. .

Among individual stocks, Bank of Montreal ( BNKD ) (BMO.TO, BMO) closed up $6.61, or 4.7% after reporting better than expected fiscal first-quarter results. National Bank Financial reiterated its outperform rating on the bank's shares and raised its target raised to C$161 from $153.

Bank of Nova Scotia ( BNS ) also reported better than expected fiscal first-quarter results, but its shares ended down $0.85 to $71.38 as results from its Canadian Banking and International Banking divisions generated lower adjusted earnings. National Bank left its sector-perform rating and $78.00 target in place following the release, as it worried "tariff uncertainty will weigh on the stock".

Rosenberg Research noted U.S. households are "getting scared off" by the tariffs and the eroding outlook for jobs and incomes. Rosenberg Research noted the Conference Board's consumer confidence survey followed its University of Michigan counterpart, dropping to an eight-month low of 98.3 in February from 105.3 in January. The consensus estimate was 102.5. While the 'here and now' present situation subindex held firm at 136.5 from 139.9 in January, the really big slide was in the Expectations category, which tanked to 72.9 from 82.2, and it is this index that drives future economic activity, Rosenberg noted..

On the Canadian front, Desjardins noted while the provinces look to have begun 2025 on a strong note, it said a pending 25% U.S. tariff on Canadian goods imports could cause significant slowdowns and alter the growth rankings among provinces. According to Desjardins, non-energy sectors, particularly manufacturing, are expected to be the most affected. This would hinder economic activity in Ontario, Quebec, Manitoba and Prince Edward Island, in particular, resulting in lower growth compared to the national average. In contrast, oil-exporting provinces like Alberta and Saskatchewan might fare better due to anticipated tariff exemptions, as energy exports only face a 10% levy. Meanwhile, British Columbia and Nova Scotia, being less reliant on U.S. trade, should outperform other provinces.

Desjardins said provinces with higher exposure to U.S. trade, like Ontario, Quebec and Manitoba, may need more substantial support. However, it added, provinces should maintain a manageable debt burden in the event they provide targeted relief in regions and sectors most affected by U.S. tariffs.

RBC Economics also issued a note today on tariffs, noting the federal and provincial governments are heading into the 2025 budget season facing difficult issues with the threat of a trade war with the United States at the top of the priority list.

However, RBC said, Canada's changing relationship with the United States will not be an isolated risk for governments. "We have argued that structural economic challenges will need to be addressed, including managing the fiscal fallout from lower immigration targets and tackling the ongoing affordability crisis (especially amid election-year pressures). At the same time, cracking Canada's long-standing productivity puzzle remains a critical priority," the bank noted.

RBC added, "All these pressures will play an important role in shaping fiscal decisions from coast to coast. Balancing pressing demands against a potentially volatile economic environment will require careful stewardship of fiscal health."

Of commodities, West Texas Intermediate closed at the lowest in more than two months on Tuesday on the prospect of an increase in supply and weaker demand due to mercurial policy decisions from the U.S. President, as well as plunging U.S. consumer confidence. WTI crude oil for April delivery closed down $1.77 to settle at US$68.93 per barrel, the lowest since Dec. 10, while April Brent crude was last seen down $1.84 to US$72.95.

Gold moved down from a record high late afternoon as traders take profits while safe-haven demand continues to offer support for the precious metal. Gold for April delivery was last seen down $43.90 from Monday's record close to US$2,919.30 per ounce.