04:18 PM EST, 02/06/2025 (MT Newswires) -- The Toronto Stock Exchange closed lower on Thursday on tariff worries and weaker oil prices.

The S&P/TSX Composite Index closed down 35.35 points to end at 25,534.49. Telecoms, down 2.98%, Healthcare, down 3.1%, and Information Technology, down 1.80%, were the biggest decliners. Base Metals, up 0.94%, and Financials, up 0.82%, were the gainers.

Among commodities, gold traded down from a record high late afternoon Thursday as the dollar moved higher, though safe-haven demand amid Donald Trump's tariff threats continue to support the metal. Gold for April delivery was last seen down $13.20 to US$2,879.80 per ounce after rising to the highest ever a day earlier.

West Texas Intermediate crude oil closed lower for a fourth-straight session on Thursday as rising U.S. inventories are capping optimism spurred by Saudi Arabia raising the price it charges Asian buyers. WTI crude oil for March delivery closed down $0.42 to settle at US$70.61 per barrel, while April Brent crude was last seen down $0.28 to US$74.33.

Vikas Dwivedi, Global Energy Strategist at Macquarie, published a note looking at potential scenarios around proposed tariffs. On Canadian crude, Dwivedi said Canadian producers are "likely to wear the cost." Macquarie expects the price impact of Trump's proposed 10% levy on Canadian oil imports to be neutral to WTI price if tariffs are implemented on the assumption that the burden will land on Canadian producers. Currently, he noted, around 80% of Canada's crude production flows south to U.S. refiners with limited ability to diversify export destination.

"As such, we anticipate the Canadian producers will see reduced margins on crude due to their inability to clear a larger percentage of their production without U.S. consumption and infrastructure."

Elsewhere at Macquarie, David Doyle, head of economics, noted Canada has received a one-month reprieve from President Trump's tariff threat as a result of a deal surrounding existing and new commitments at the border. The President has outlined that during the pause it will be determined if a broader economic deal can be reached.

Doyle said the focus is likely to include the U.S. trade deficit with Canada, current trade disputes that may provide a precursor to the USMCA renegotiation, and defense spending.

"While tactically Canada is likely to keep its retaliation measures at the ready, there are also developments that could result in a strategic orientation to diversify the economy away from reliance on the U.S. This is likely to include greater support for the resource sector, especially oil & gas. There has already been a shift in tone on this front in recent days," he added.

BMO noted that among provinces, Alberta and Saskatchewan are most at risk from tariffs, with 25% to 36% of GDP, respectively, coming from exports to the United States, but the bank thinks Ontario will bear the brunt of any levies.

"Non-energy U.S. export exposure is highest throughout Central Canada. In Ontario, for example, U.S. goods export top 17% of GDP with a wide range of industries exposed -- for example autos, machinery, metals and consumer goods," the bank noted.