U.S. stock markets plummeted amid fears that President Donald Trump’s tariffs on Canada, Mexico, and China could ignite a full-scale trade war, dealing a blow to the economy. The S&P 500 index, which tracks 500 of the largest U.S. companies, fell for a second consecutive day, closing at its lowest level since Trump’s election in November.
Trump followed through on his threats to impose sweeping tariffs, including a 25% levy on imports from Canada and Mexico and a 20% duty on Chinese goods. The move prompted swift retaliation. Canadian Prime Minister Justin Trudeau criticized the decision as “a very dumb thing to do,” warning that Canada would impose countermeasures. China also responded with tariffs of 10-15% on key U.S. agricultural products such as wheat, corn, and soybeans.
Trump, in response to Trudeau’s comments, took to social media to defend his actions: “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!”
Despite the escalating tensions, U.S. Commerce Secretary Howard Lutnick suggested that a deal could still be reached with Canada and Mexico. “I think he’s going to work something out with them,” he told Fox News, hinting at potential negotiations in the coming days.
Global markets also took a hit following Trump’s tariff announcement, with the Dow Jones Industrial Average falling 1.5% and the Nasdaq dropping 0.35%. The S&P 500 closed 1.2% lower. Major U.S. retailers and automakers were among the hardest hit, with electronics chain Best Buy seeing its stock plunge over 13% after warning that tariffs could lead to higher consumer prices.
Mexico’s President Claudia Sheinbaum announced that her country would unveil its own countermeasures on Sunday, including “tariff and non-tariff measures” targeting U.S. exports. Meanwhile, European officials remain on high alert, as Trump has threatened to impose 25% tariffs on EU goods, claiming the bloc was “formed to screw the United States.”
Analysts warn that the escalating tariff war could slow global trade, push inflation higher, and even increase the risk of recession. While Trump argues that tariffs will boost domestic manufacturing and protect American jobs, critics caution that they may ultimately burden consumers and businesses with higher costs.
Markets are now closely watching Trump’s upcoming address to Congress on Tuesday, where he is expected to outline his next steps. With billions of dollars of trade at stake, businesses and global leaders alike are bracing for further economic fallout.
Related Readings:
.
#Trump #Tariffs #Shake #Markets