US Stocks Tumble as Trump's Tariffs on Canada, Mexico, and China Send Shockwaves Through Markets
President Donald Trump's announcement of hefty tariffs on Canada, Mexico, and China has triggered a sharp sell-off in US stock markets.
The Nasdaq Composite (^IXIC) plummeted over 2%, while the S&P 500 (^GSPC) spiraled down by 1.6%. The Dow Jones Industrial Average (^DJI) nosedived by 1.2%, losing more than 550 points.
Industries reliant on cross-border trade, such as automakers and consumer discretionary stocks, suffered the most significant losses. Tech stocks also weighed heavily on markets, with shares of AI chip giant Nvidia (NVDA) and iPhone maker Apple (AAPL) dropping.
The tariffs, set to take effect on Tuesday, will impose 25% duties on Canada and Mexico, while China will face 10% tariffs. Canada and Mexico have swiftly announced retaliatory measures.
The US dollar index (DX-Y.NYB, DX=F) surged to near its highest levels in two years. Meanwhile, West Texas Intermediate crude futures (CL=F) jumped over 2%, outpacing the rise in the international benchmark Brent (BZ=F).
Analysts have warned that the tariffs could have far-reaching consequences for consumers, potentially increasing prices for a range of goods, including automobiles, clothing, computers, and avocados.
The uncertainty surrounding President Trump's trade agenda and the potential impact of retaliatory measures has raised concerns among investors. The Federal Reserve has expressed hesitancy in raising interest rates due to fears of higher inflation resulting from the tariffs.
The market sell-off highlights the growing unease over the potential impact of trade tensions on the US economy and global markets.