Trump’s Tarriffs Force Stocks Into Freefall
Source: Michael M. Santiago / Getty
Stocks took a downturn on Wall Street today following the escalation of a trade war between the U.S. and key trading partners.
U.S. stocks are taking a hit as tariffs between the U.S., China, Canada, and Mexico add to economic concerns. The S&P 500 dropped 1.7%, with all sectors in the red. The Dow fell 722 points (-1.7%) by mid-morning, and the Nasdaq slid 1.5%, pushing it toward correction territory.
Tech stocks, which fueled much of 2024’s gains, are now dragging the market down in 2025. Global markets are feeling the pressure, with sharp declines in Europe and smaller losses in Asia. Monday’s sell-off wiped out all market gains since Trump’s 2016 election, as hopes for pro-business policies fade.
New tariffs are escalating tensions. Imports from Canada and Mexico now face a 25% tax, with Canadian energy products at 10%. Trump doubled tariffs on Chinese imports from 10% to 20%. Retaliation was swift—China hit U.S. farm products with tariffs up to 15% and tightened restrictions on U.S. companies. Canada plans to impose over $100 billion in tariffs within 21 days, and Mexico is following suit.
Retailers are warning of serious consequences. Target, despite beating earnings expectations, dropped 5.4% due to profit concerns. Best Buy plummeted 14.2% after issuing a weaker forecast, citing tariff pressures. CEO Corie Barry warned that China and Mexico are their top suppliers, and price hikes for U.S. consumers are likely as vendors pass along the costs.
With inflation fears rising, Wall Street is bracing for more volatility.
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