Canadian equities climbed Wednesday after US President Donald Trump announced a three-day delay on new 50% tariffs, signaling that a trade deal between the two nations was nearing completion.

The S&P/TSX Composite Index rose 0.4% by midday in Toronto, having surged as much as 1% earlier in the session. Leading the gains were the materials and real estate sectors, with precious metals stocks such as Agnico Eagle Mines Ltd and Barrick Mining Corp among the top performers.

Trade-sensitive sectors also benefited from the tariff pause, particularly railway stocks which saw notable increases. The positive momentum reflected investor optimism over the potential resolution of trade tensions between the US and Canada.

Analysts noted that the temporary reprieve provides a window for both countries to finalize outstanding trade terms, potentially avoiding the economic disruption that higher tariffs could bring.