Investing.com - Canada’s main stock index was down on Monday, after continued uncertainty regarding U.S. and China tariffs.

By 10:00 ET, the S&P/TSX 60 index had fallen by 13.6 points or 0.9%.

The S&P/TSX Composite index was down 275 points or 1.1% on Monday, after rising on Friday amid its biggest weekly drop since December.

Underpinning sentiment was a move by Trump to temporarily delay the implementation of U.S. tariffs on goods covered in a prior trade agreement until April 2, although the on-and-off nature of Trump’s trade policy sowed widespread confusion in markets.

Analysts have warned that the levies could upend not only growth in Canada, but also broader activity in the highly-integrated North American economy.

Investors are looking ahead to a key Bank of Canada interest rate decision later this week, with policymakers tipped to announce a 25-basis point borrowing cost reduction. Traders have also noted that they will be particularly curious to see if the central bank offers any commentary on Trump’s tariffs and the impact the measures could have on the economy.

Media reports have suggested that Canadian retaliatory tariffs against the U.S. would remain in place despite Trump postponing the duties on most goods from the country for a month.

Elsewhere, markets were assessing the outcome of a leadership election in Canada’s ruling Liberal Party. Former central banker Mark Carney won 86% of the vote to succeed Justin Trudeau as the country’s Prime Minister, topping ex-finance minister Chrystia Freeland.

Carney hit out at Trump in an address following the ballot, saying he is "attacking Canadian workers, families and businesses."

Meanwhile, China’s foreign ministry congratulated Carney on his win and urged Ottawa to work to improve its relationship with Beijing. The comments came after China slapped levies on more than $2.6 billion of Canadian agricultural and food products over the weekend in retaliation against duties Canada rolled out in October.

U.S. stocks decline

U.S. stocks also fell, continuing the previous week’s selloff amid concerns that President Donald Trump’s tariff policies could hit U.S. economic activity.

At 10:10 ET, Dow Jones Industrial Average lost 342 points, or 0.8%, the S&P 500 fell 96 points, or 1.7%, and the NASDAQ Composite dropped 499 points, or 2.8%.

The major U.S. stock indexes, roiled by Trump’s tariff announcements, logged heavy losses last week.

The S&P 500 declined nearly 3% last week, its worst week in half a year, the Dow Jones Industrial Average fell 2.2%, and the NASDAQ Composite experienced a 3.5% weekly drop, falling by more than 10% since touching a record high in December -- putting it in correction territory.

Over the weekend, Trump did not rule out the possibility of a U.S. recession this year and flagged short-term economic turbulence from his trade and fiscal agenda.

When asked about the possibility of a recession in an interview on Fox News, Trump said he did not wish to make predictions, stating that there was a “period of transition because what we’re doing is very big.”

Crude edges lower

Oil prices inched lower Monday, after falling to more than three-year lows last week on concerns over slowing demand amid uncertainty over the impact of U.S. trade tariffs.

At 10:15 ET, Brent futures fell 0.4% to $69.97 a barrel, while U.S. West Texas Intermediate futures lowered by 0.3% to $66.82 per barrel.

Chinese consumer and producer inflation data, released over the weekend, showed a persistent deflationary trend in the world’s biggest oil importer, adding to underlying concerns.

Gold advanced slightly

Gold prices ascended marginally in trading following modest gains last week, as the U.S. dollar remained near a four-month low amid uncertainties around Trump’s trade policies.

In response to the murky tariff outlook, traders have increasingly turned to safe-haven assets like gold, recently sending the precious metal surging to record highs. The greenback’s decline against major currencies has also made gold, priced in dollars, more attractive to investors.

Investors were also pouring over last week’s U.S. jobs report and comments from Federal Reserve Chair Jerome Powell as they attempted to gauge the central bank’s interest rate outlook.

(Scott Kanowsky also contributed to this article)