The Globe and Mail reports in its Tuesday edition that the stock market had ignored U.S. President Donald Trump's months-long threat to impose stiff tariffs on key U.S. trading partners. The Globe's David Berman writes that Monday was something of a shock to the markets. "We were confident that tariffs were coming, but this was much worse than expected," Ian de Verteuil, a strategist at CIBC Capital Markets, said in a note Sunday. Then the U.S. announced Monday it has agreed to delay tariffs against Mexico for a month, suggesting that negotiations are back on. RBC analyst Darko Mihelic warned of downside risk to bank stocks and life-insurance companies as the sector adjusts to weaker credit health, slower loan growth and an economic downturn. "Canadian bank stocks will not perform well, as suggested by past performance entering a recession," Mr. Mihelic said in a note. In early trading on Monday, stocks acknowledged this gloomy outlook, marking a fundamental shift in sentiment from just days before. The S&P/TSX Composite Index, which closed at a record high on Thursday, fell as much as 3.1 per cent soon after trading began. The benchmark retraced some of those losses, ending down 291.34 points or 1.1 per cent.