US Stocks Plummet After Trump Announces Tariffs on Mexico and Canada
The US stock market sharply declined yesterday, with the S&P 500 losing 1.76%, as President Donald Trump announced his plan to impose a 25% tariff on Mexican and Canadian goods starting Tuesday. The Dow Jones Industrial Average fell 1.48%, while the Nasdaq Composite dropped 2.64%. China will also face an additional 10% tariff.
Trump’s announcement dashed early hopes for a last-minute deal to avoid tariffs on Canada and Mexico, which had been proposed by Treasury Secretary Scott Bessent as a way to avoid being hit with Trump’s tariffs. Commerce Secretary Howard Lutnick said the tax on Mexico and Canada was “fluid” and could be less than 25%.
The imposition of tariffs has added to economic concerns, including weak manufacturing data that suggests an even sharper economic contraction in the first three months of the year. Investors will closely watch labor market data, including the February jobs report, later this week.
In corporate news, Capri agreed to sell Versace to Prada for nearly $1.6 billion, while Intel shares reversed gains and fell 4.17% after a report on chip designers Nvidia and Broadcom’s tests on its manufacturing process.
Source: https://eu.usatoday.com/story/money/markets/2025/03/03/stock-market-monday-open-tariffs-crypto-impact/81096195007