By Alexander Osipovich

The head of TMX Group, parent company of the Toronto Stock Exchange, decried the brewing trade war between the U.S. and Canada and suggested it would lead to fewer companies going public.

"It's unfortunate and unnecessary," TMX CEO John McKenzie said in a Tuesday interview on the sidelines of an exchanges-industry conference in Florida. "It's just going to hurt people on both sides of the border."

McKenzie said he anticipated a slowdown in initial public offerings in both the U.S. and Canada, as companies avoid IPOs during a time of market volatility and uncertainty over trade. "The confidence in their ability to do a transaction is limited," he said.

President Trump ratcheted up the spat between the two neighbors on Tuesday, saying the U.S. would increase its planned 25% tariffs on Canadian steel and aluminum to 50%. The pledge, made in a post on Truth Social, came after Ontario imposed a 25% surcharge on its electricity exports to the U.S.

Ontario later Tuesday suspended the surcharge following a conversation between its premier and U.S. Commerce Secretary Howard Lutnick.

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(END) Dow Jones Newswires

March 11, 2025 16:08 ET (20:08 GMT)

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