Dow Drops 700 Points, Nasdaq Flirts With Correction Territory as Trump’s Trade War Escalates
U.S. stocks saw losses mount on Tuesday as President Donald Trump’s tariffs on key trade partners took effect and prompted retaliatory measures, escalating fears of a global trade war and the national economy cracking.
The Dow Jones Industrial Average dropped 715 points, or 1.5%, building on Monday’s plunge of nearly 650 points. The S&P 500 shed 1.6%. The Nasdaq Composite lost 1.5%, putting the tech-heavy index on track to close in correction territory, which is when it falls 10% from a recent high.
Tuesday’s nosedive comes after 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.′ southern neighbor would respond with tariffs and other tools that would be announced this weekend.
Source : CNBC
