Wall Street cuts losses after Trump delays tariffs on Mexico for a month
Wall Street's main indexes pared losses on Monday, as U.S. President Donald Trump delayed new tariffs on Mexico after his orders to levy steep tariffs on three countries sparked a global scramble to safe-haven assets earlier in the day.
Trump said he has paused planned tariffs on Mexico for one month after the nation agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs, particularly fentanyl.
Over the weekend, Trump had announced hefty new tariffs of 25% on imports from Mexico and Canada, and 10% on China - which he said may cause "short-term" pain for Americans.
"Trump has been really serious that tariffs are going to be a primary tool to achieve a number of different things," said Carol Schleif, chief investment officer at BMO Family Office.
"They're not going away and the ride is likely to be bumpy in the short run. And it's clear the European Union is in his sights too."
Analysts at Citi noted that "if tariffs persist, markets are likely to move further (down) and inflationary effects will emerge."
At 2:19 p.m. EST (1919 GMT), the Dow Jones Industrial Average rose 5.17 points, or 0.01%, to 44,549.83, the S&P 500 lost 21.37 points, or 0.36%, to 6,019.00 and the Nasdaq Composite lost 129.66 points, or 0.66%, to 19,497.78.
Six of the 11 major S&P sectors rose, with defensive ones such as healthcare and consumer staples leading gains.
Source: Reuters
