Investing.com -- Shares in top Canadian industrial companies surged on Monday following news of a 90-day suspension of escalating tariffs between the United States and China. Shares in TFI International Inc (TSX:TFII) jumped 8.9%, Canadian National Railway Co (TSX:CNR) gained 5%, Canadian Pacific (NYSE:CP) Kansas City Limited (TSX:CP) rose 4.8%, and Air Canada (TSX:AC) advanced 4.3%.
The gains came after both governments announced mutual tariff reductions. The U.S. will lower recently imposed “reciprocal” duties on Chinese goods to 10%, while maintaining a separate 20% tariff related to fentanyl issues. China, in turn, reduced its tariffs on U.S. goods to 10%, according to a joint statement released following weekend talks.
The move alleviated investor concerns that the trade dispute could escalate further and pose a risk to global economic stability. Markets responded positively to commitments from both sides to resume negotiations and hold regular working-level dialogues.
Transportation and logistics stocks were particularly strong, as the sector is closely tied to global trade flows. Reduced trade barriers are expected to support higher shipping volumes and provide companies like TFI International with a more predictable operating backdrop.
The thaw in trade tensions could lead to improved margins and volume recovery for carriers exposed to cross-border freight. The 90-day pause marks a temporary but meaningful step toward resolving bilateral trade disputes.
With both governments signaling a willingness to cooperate, transportation firms stand to benefit from any sustained improvement in cross-border trade. The tariff truce has brought cautious optimism to a sector that has faced persistent uncertainty in recent quarters.