Markets Plunge as Trump Confirms Tariffs on Canada, Mexico, and China

U.S. stocks plunged on Monday after President Trump confirmed 25% tariffs on Canada and Mexico, triggering market turmoil. The Dow fell 650 points, the S&P 500 saw its worst drop of the year, and the Nasdaq slid 2.64%. Trump defended the tariffs as necessary to curb unfair trade, while Canada vowed $30 billion in retaliatory tariffs. Additionally, Trump raised Chinese import tariffs from 10% to 20%, prompting Beijing to pledge countermeasures. Nvidia shares tumbled 8.7%, Bitcoin dropped 8.6%, and oil prices fell 2%. With market volatility rising, analysts warn of economic uncertainty as Trump signals further trade restrictions.

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• Wall Street Plunges as Trump Confirms 25% Tariffs on Canada and Mexico

Markets Plunge as Trump Confirms Tariffs on Canada, Mexico, and China

U.S. stocks experienced a sharp decline on Monday after President Donald Trump confirmed that tariffs on Canada and Mexico would take effect by midnight. The Dow Jones Industrial Average dropped 650 points, or 1.48%, closing at 43,191, after initially plunging nearly 900 points before recovering slightly. The S&P 500 saw its largest single-day drop of the year, falling 1.76%, while the Nasdaq Composite slid 2.64%, bringing its total decline to 6.5% since Trump took office in January.

Trump announced during a White House press conference that both Canada and Mexico would face 25% tariffs unless they shifted production to the U.S., arguing that the move was necessary to prevent these countries from unfairly benefiting from the American economy. Canadian Prime Minister Justin Trudeau quickly responded, vowing that Ottawa would impose retaliatory tariffs on $30 billion worth of U.S. goods, calling Trump’s decision unjustified.

Additionally, Trump signed an executive order raising tariffs on Chinese imports from 10% to 20%, citing Beijing’s failure to address fentanyl trafficking into the U.S., prompting China’s commerce ministry to pledge countermeasures. The market reaction was severe, with Wall Street’s fear gauge, the VIX, reaching its highest level of the year. Analysts expressed concerns that while the tariffs might encourage domestic production, they could also increase costs for U.S. manufacturers and provoke trade retaliation. Goldman Sachs noted that higher tariffs would likely lead to increased production expenses and reduced demand for American exports.

Meanwhile, shares of Nvidia tumbled 8.7%, Bitcoin dropped 8.6% to $85,600, and oil prices fell 2% after OPEC+ announced a production increase in April. The 10-year Treasury yield declined to 4.16%, reflecting economic uncertainty. Additionally, European defense stocks surged as investors anticipated increased military spending in response to shifting U.S. foreign policy. Adding to market unease, Trump suggested on Truth Social that tariffs on certain agricultural products could take effect on April 2, urging American farmers to prepare for higher domestic demand. As Trump’s trade policies continue to evolve, analysts expect market volatility to persist in the coming months.

Wall Street Plunges as Trump Confirms 25% Tariffs on Canada and Mexico

U.S. stock markets tumbled on Monday after President Donald Trump reaffirmed that 25% tariffs on imports from Canada and Mexico would take effect on Tuesday, intensifying fears of a trade war in North America.

Trump’s announcement caused sharp declines in U.S. equities, with the Dow Jones Industrial Average dropping 650 points (1.48%), the S&P 500 losing 1.76%, and the Nasdaq Composite falling 2.64%. The Mexican peso and Canadian dollar also weakened following the news.

Speaking at the White House, Trump insisted that tariffs were necessary to encourage companies to shift production to the U.S. He also confirmed a 20% tariff hike on Chinese imports, citing Beijing’s failure to curb fentanyl trafficking. Additionally, he announced reciprocal tariffs on countries imposing duties on U.S. goods, set to take effect on April 2.

The trade measures are expected to significantly impact the North American economy, which relies on integrated supply chains. Analysts warn that higher tariffs could disrupt industries such as automotive manufacturing, leading to increased production costs and consumer price hikes. Automakers took a hit, with General Motors stock down 4% and Ford falling 1.7%.

Canadian officials, including Foreign Minister Mélanie Joly, criticized the move, promising retaliatory measures. Mexico’s President Claudia Sheinbaum assured that her administration had contingency plans in place but refrained from disclosing specifics.

Trump’s escalating tariff policies extend beyond North America. In recent weeks, his administration has initiated investigations into imports of lumber, copper, and digital services taxes, raising concerns about inflation and global economic instability. Experts caution that prolonged trade tensions could push the global economy toward a recession.