The Globe and Mail reports in its Tuesday edition that on Friday when President Donald Trump announced 25-per-cent tariffs on Canadian and Mexican imports, Canada and Mexico retaliated with their own set of tariffs, setting off a trade war that many observers believe will destabilize trade, raise U.S. inflation and cause a recession in Canada. The Globe's David Berman writes that CIBC's Ian de Verteuil said in a note Sunday, "We were confident that tariffs were coming, but this was much worse than expected." The U.S. announced Monday it has agreed to delay tariffs against Mexico for a month, suggesting that negotiations are back on. After markets closed, Prime Minister Justin Trudeau similarly announced that Mr. Trump agreed to pause tariffs on Canada for 30 days. Still, some analysts are anticipating a rough future. RBC's 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 took a negative turn in sentiment from just days before.