Canada’s TSX Index Surges 29% in 2025 Amid Trade Turmoil and Political Shifts
Canada’s S&P/TSX composite index closed 2025 with a historic 29% gain, marking its second-best annual performance since 2000. The benchmark recorded 63 all-time highs, predominantly in the latter seven months of the year, despite early turbulence from U.S. trade policies.
Political tensions flared in April as then-U.S. President Donald TRUMP imposed severe tariffs and floated annexation rhetoric. Markets recoiled until a dual reprieve emerged: Trump rolled back the most damaging trade measures, and Mark Carney assumed leadership as Canada’s prime minister, stabilizing financial markets.
The materials sector spearheaded the rally, doubling as gold, silver, and industrial metals surged. Financials climbed steadily, capitalizing on global capital flows redirected by Trump’s fragmented trade landscape. This wasn’t a speculative frenzy—just seven months of relentless upward momentum, proving Canada’s resource-heavy economy could thrive amid geopolitical chaos.
