CANADA STOCKS-TSX set for monthly loss as Trump's tariff announcement nears

By Sanchayaita Roy

March 31 (Reuters) - Canada's main stock index fell on Monday, dragged by information technology stocks, as investors shunned risky assets amid concerns that U.S. President Donald Trump's upcoming tariffs will hurt the global economy.

Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.2% at 24,686.72 points, and is poised to decline nearly 3% this month, if losses hold.

Global stocks plunged after Trump said on Sunday the reciprocal tariffs he is expected to announce on Wednesday will include all nations, adding to existing levies on aluminum, steel, autos and a range of Chinese goods.

"We've got that big fear that there could be a lot of tariffs implemented on Wednesday", said Colin Cieszynski, chief market strategist at SIA Wealth Management.

While Canada had secured protections against new U.S. auto tariffs, including a 60-day delay and annual duty-free quotas, under a 2018 trade agreement with the U.S. and Mexico, there's no evidence Trump will honor those commitments.

However, the Canadian government expects the U.S. to honor the agreements on Wednesday.

Information technology .SPTTTK led declines, down 2.6% to its lowest in five months, with electronic equipment company Celestica CLS.TO falling 7.2% to the bottom of the benchmark index.

Meanwhile, heavy-weight energy .SPTTEN climbed 1.4%, tracking crude prices, spurred by Trump's threat to impose secondary tariffs on buyers of Russian oil and a warning of possible military action against Iran.

Consumer staples .GSPTTCS gained 1.3% with Metro MRU.TO rising 2% after the food and pharmacy retailer said it prioritizes local products amid the "Buy Canadian" movement.

Gold prices reached a fresh record high, as worries about potential inflation pressures due to U.S. tariffs put the safe-haven asset on track for its strongest quarter since 1986.

"Gold helps to cushion the Canadian market a bit, as we've seen this over the last few days that Canada has gone down less than the U.S. as the heavily weighted gold sector benefits from this uncertainty", Cieszynski added.