Stocks are Under Pressure Again as Trump’s Tariffs Spark Retaliation
U.S. stocks slid on Tuesday after a big sell-off on Wall Street, as President Donald Trump’s tariffs on Canada, Mexico and China took effect — leading to retaliation from some of those countries.
The Dow Jones Industrial Average dropped 432 points, or 1%. The S&P 500 shed 1%. The Nasdaq Composite lost 0.9% and could enter correction territory.
The U.S. instituted 25% duties on Canada and Mexico that took effect at midnight. Trump also slapped an additional 10% tariff on Chinese goods.
China retaliated with additional tariffs of up to 15% on some U.S. products. Canadian Prime Minister Justin Trudeau said his country would also put a 25% levy on U.S. goods. Mexican President Claudia Sheinbaum said the U.S.’s Southern neighbor would respond with tariffs and other tools that would be announced this weekend.
Shares of GM and Ford were lower by 3% and 2%, respectively. Chipotle, which sources about half of its avocados from Mexico, slipped more than 2%.
Tuesday’s moves follow a Monday sell-off that dragged the S&P 500 into the red for 2025. Because investors hoped that a last-minute deal could be reached to side-step the full taxes on Mexico and Canada, losses steepened in Monday’s session after Trump confirmed the long-awaited levies were coming.
Source : CNBC
