US stocks slid Monday as investors braced for President Donald Trump’s proposed tariffs on Canada and Mexico to take effect by midnight. The Dow Jones Industrial Average tumbled 650 points, or 1.48%, to close at 43,191. The broader S&P 500 fell 1.76% and the Nasdaq Composite dropped 2.64%.
The news comes as Trump announced that tariffs — 25% on Canada and 25% on Mexico — will start tomorrow. Canadian Prime Minister Justin Trudeau said Ottawa would respond with tariffs on $30 billion of US goods if the measures go into effect.
Trump also raised tariffs on imports from China to 20%, up from 10%. The move aims to curb fentanyl entering the US, but it may have negative effects on some American businesses and boost prices for imported goods.
Analysts predict that the stock market will be volatile until Trump’s policies become more growth-focused. Some experts, however, remain optimistic about future growth, citing a “positive medium-term outlook.”
The uncertainty surrounding tariffs led to a surge in the VIX, Wall Street’s fear gauge, reaching its highest point this year. Bitcoin also fell 8.6% on Monday, largely erasing gains made after Trump announced a strategic crypto reserve.
European leaders consider re-arming amid less US support for Ukraine, while defense companies in Europe soared to record highs. The yield on the 10-year Treasury slid to 4.16%, signaling concerns about uncertainty and future economic growth.
Source: https://edition.cnn.com/2025/03/03/investing/us-stocks-tariffs-loom/index.html