12:16 PM EDT, 04/09/2025 (MT Newswires) -- The Toronto Stock Exchange which was briefly in positive territory earlier, is down 77 points at midday with all sectors lower, with the tariffs fallout impacting market.

A day after the U.S. imposed a massive 104% levy on Chinese imports, China announced countermeasures, saying it will raise its retaliatory tariff on the U.S. to 84%, up from 34%, effective April 10.

Meanwhile, the Canadian government today added to its retaliatory measures in response to U.S. automobile duties by implementing similar tariffs on vehicles imported from the United States.

But it is the U.S. and China spat that is moving markets. Rosenberg Research in its 'Early Morning With Dave' note said Congressional Republicans are getting nervous amid Chinese pressure in a 'Game of Chicken' with the United States. According to the research, cracks may finally be emerging within the GOP ranks. And it said in order for markets to turn bullish, "this is what we need to see". Perhaps, the research said, we will all be thanking Xi Jinping when all is said and done because: one, China is not scared of the President; two, the Chinese leader does not need to worry about any midterm elections; and three, the Chinese have a long history of absorbing pain.

Wells Fargo Investment Institute (WFII) said from its perspective markets need finality with respect to Trump administration's trade policy, and right now the situation is too fluid. Meanwhile, it noted, economic data is cooling and company guidance has become much more cautious. The S&P 500 Index will try to find support next at the April 2024 and October 2023 lows (5004 and 4138), WFII added.