Canadian tech stocks, including Shopify and Lightspeed, rallied today after the United States (US) announced it would pause universal tariffs and reduce them to 10 percent for most countries except China.
Shopify’s Nasdaq-listed share price soared by 18.6 percent on the day and closed at $91.40 USD.
After a chaotic period when it wasn’t clear whether Canada was included in 10-percent baseline tariffs, the White House confirmed to several news outlets that no new tariffs have been applied to Canada or Mexico. This uncertainty only added to the whiplash Canadian tech companies have been experiencing since the US-Canada trade war began last month.
Shopify’s Nasdaq-listed share price soared by 18.6 percent on the day and closed at $91.40 USD. Lightspeed followed a similar trajectory, rising by 14 percent to close at $9.20 USD on the New York Stock Exchange (NYSE).
On the Toronto Stock Exchange (TSX), gains were slightly less steep but still significant. Shopify rose by 17.5 percent, from trading around $110 CAD to closing at $129 CAD. Lightspeed jumped 13.3 percent to finish the day at $13 CAD.
Other prominent Canadian tech stocks rallied on the TSX today, too. Constellation Software was up nearly nine percent, BlackBerry by 14 percent, and OpenText and D2L both by eight percent.
The gains reverse last week’s tariff-spurred market sell-off that saw nearly $5 trillion USD erased from global markets after the US, rivalling the rout at the start of the COVID-19 pandemic five years ago. Canadian tech stocks, including Shopify, Lightspeed, Constellation Software, BlackBerry, and Opentext, all dropped with the rest of the market.
RELATED: Shopify, Lightspeed among Canadian tech stocks dragged down in US tariff-spurred market plunge
Markets reacted favourably across the board to Trump’s tariff walkback. The TSX was up 5.4 per cent to end the day, and the Nasdaq closed up 12 per cent.
Tech stocks on the major exchanges started trading higher today after US President Donald Trump posted on Truth Social just after 1 p.m., announcing that he is authorizing a 90-day pause on universal tariffs imposed on nearly every country except China. Trump also said he was immediately lowering the so-called “reciprocal” tariff to 10 percent during this time.
Twenty-five percent tariffs on steel and aluminum, some auto parts, and goods that fall outside of the Canada-U.S.-Mexico Agreement (CUSMA) on trade are still in effect.
Though they may be two of the most prominent Canadian tech stocks, the overall stories for Shopify and Lightspeed listings are radically different.
Last week’s dragdown for Shopify came as its share price is up 22 percent over the past year. Between Trump’s universal tariff announcement on Wednesday evening and Friday afternoon, Shopify’s share price had dropped nearly 25 percent. Shopify recently transferred its public listing from the traditional New York Stock Exchange (NYSE) to the tech-heavy Nasdaq.
For Lightspeed, the recent volatility exacerbated an already tough year. Its stock price is down 35 percent compared to a year ago. The company scaled back its revenue outlook this month, citing deteriorating macroeconomic conditions that are impacting consumer spending habits.
Disclosure: BetaKit majority owner Good Future is the family office of two former Shopify leaders, Arati Sharma and Satish Kanwar.
Feature image courtesy Yorgos Ntrahas via Unsplash.