Investing.com - Canada’s largest stock market dropped on Wednesday, as investors assessed the outlook for U.S. President Donald Trump’s tariff plans.

By the 4:00 ET close, the S&P/TSX 60 index had slipped by 10.2 points or 0.7%.

The Toronto Stock Exchange ’s TSX composite index fell 178.5 points or 0.7% on the day, having gained 35.40 points or 0.1% in the prior session, notching its highest closing level since February 28. Sentiment was buoyed by recent media reports suggesting that Trump would roll out more targeted reciprocal tariffs than initially anticipated at an expected announcement on April 2.

On Wednesday evening, Trump announced 25% auto tariffs on all cars not made in the U.S.

Trump later said that he will seek to limit exceptions to his plans to impose more trade tariffs, as his April 2 deadline for reciprocal duties approaches.

The president told Newsmax in a Tuesday evening interview that he did not “want to have too many exceptions” to his upcoming levies, which he has previously threatened could match foreign duties placed on U.S. goods.

“I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people,” Trump said.

Recent reports have suggested Trump’s measures may be more targeted than originally thought, aiming at about 15 countries that the White House believes have a trade imbalance with the U.S. Trump is also expected to impose tariffs on the automotive, pharmaceutical, and semiconductor sectors, although it was unclear whether these will be revealed on April 2.

Fears over the broader impact of Trump’s tariffs have battered global markets recently, although the rout appeared to be easing somewhat this week. Economists and business have warned that the levies may drive up inflation and drag down growth in the U.S. and beyond.

In other news, Canadian Prime Minister Mark Carney spoke Wednesday from the Ambassador Bridge in Windsor, Ontario. During his speech, Carney emphasized the importance of Canada’s automotive industry and announced a “Strategic Response Fund” of CAD$2 billion ($1.4 billion USD ) to bolster the Canadian auto industry and its supply chain in response to the U.S.’s April 2 auto tariffs.

U.S. closes suffering losses

U.S. stock indexes slipped in trading Wednesday, with investors remaining on edge in anticipation of more clues into Trump’s trade tariffs, ahead of a string of upcoming economic readings and corporate earnings.

At the 4:00 ET close, the Dow Jones Industrial Average slipped 132.7 points, or 0.3%. The S&P and Nasdaq were hit harder, with the S&P 500 falling 64.5 points or 1.1%, and the NASDAQ Composite retreating 372.8 points, or 2.04%.

The main averages eked out gains on Tuesday, with markets breathing a sigh of relief after recent media reports suggested that Trump’s anticipated April 2 tariffs would be more limited than expected.

"[T]he absence of further bad news on the data front, some reassurance from the [interest rate-setting Federal Open Market Committee] last week, and leaks suggesting the administration’s much-anticipated tariff announcement next week may be watered down a little have also helped to improve the mood music," analysts at Capital Economics said in a note to clients.

Oil ticks higher amid bigger-than-anticipated U.S. crude inventories drop

Crude Oil prices climbed, continuing to rise on supply concerns as well as a bigger-than-expected drop in U.S. crude inventories.

But gains were capped after the U.S. reached deals with both Ukraine and Russia to cease attacks at sea and against energy targets. Washington has also agreed to call for the lifting of some sanctions on Moscow, which could lead to an influx of crude supply into global markets.

Both benchmarks hit their highest in three weeks on Tuesday, boosted by renewed efforts from the U.S. to limit Venezuelan and Iranian oil exports.

By 5:25 ET on Wednesday, West Texas Intermediate Crude Oil Futures gained 1.36%, pricing at $69.94 per barrel. Brent Oil Futures enjoyed an incline throughout the day, but eventually fell 0.05% to $73.31 a barrel.

Also helping the tone were figures from the American Petroleum Institute which showed that U.S. crude inventories fell by 4.6 million barrels last week, a bigger drop than expected. An official U.S. government report on crude inventories from the Energy Information Administration is due later in the session.

Gold steadies

Gold prices were slightly higher in trade on Wednesday, as traders awaited more cues on Trump’s proposals for increased trade tariffs.

The yellow metal stayed above the $3,000 an ounce mark and was close to record highs hit earlier in March, spurred by resilient appetite for traditional safe-haven assets like bullion.

Markets remained wary of the uncertainty around the scope and impact of Trump’s trade agenda, while a host of U.S. economic indicators are scheduled to be released later this week, including a measure of inflation preferred by the Federal Reserve.

(Scott Kanowsky also contributed to this article)