Wall Street’s main stock indexes tumbled late Monday after President Donald Trump announced the start of 25% tariffs on Canada and Mexico. The unexpected move sparked concerns among investors, leading to a sharp sell-off in the markets.
Trump declared that there was no chance for Mexico or Canada to prevent the tariffs from taking effect on Tuesday. “They’re going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” Trump said at the White House.
The impact on the stock market was immediate. The S&P 500 lost 1.75%, ending at 5,850.31 points. The Nasdaq Composite declined by 2.64%, closing at 18,350.19, while the Dow Jones Industrial Average fell 1.47% to close at 43,197.30.
Additionally, the Canadian dollar and Mexican peso each fell to a one-month low against the U.S. dollar, reflecting concerns over potential economic repercussions in those countries.
The new tariffs have raised worries about escalating trade tensions and their potential impact on the global economy. Many are watching closely to see how Canada and Mexico respond and what this means for international trade relations.
