Wall Street Sinks as Trump’s Tariffs Hit Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks plummeted Tuesday as Trump’s tariffs on China, Mexico, and Canada took effect, erasing all S&P 500 gains since Election Day. The Dow fell 580 points, with major retailers like Target (-4.9%) and Best Buy (-13.9%) warning of profit pressure. Retaliatory tariffs from China, Canada, and Mexico further rattled markets, fueling inflation fears and extending Wall Street’s recent slump.
Stock Market Decline: Quick Look
- Major Sell-Off: Dow drops 580 points, S&P 500 down 1.4%.
- Tech and Retail Hit Hard: Best Buy plunges 13.9%, Target loses 4.9%.
- Tariff Impact: 25% duties on Mexico/Canada; 20% on China.
- China’s Response: 15% tariffs on key U.S. agricultural products.
- Canada Retaliates: $100 billion in tariffs on U.S. goods.
- Mexico Plans Tariffs: Targets U.S. imports in coming days.
- Inflation Concerns Grow: Tariffs raise fears of price hikes.
- Global Markets React: Europe slides, Asia declines modestly.
Wall Street Slumps as Trump’s Tariffs Take Effect
Stock Market Sell-Off Deepens
U.S. stocks tumbled Tuesday morning, extending a multi-day losing streak as President Donald Trump’s tariffs on major trading partners took full effect. The market downturn erased all gains in the S&P 500 since Election Day, reflecting growing concerns over trade wars, rising prices, and slowing economic growth.
- The S&P 500 dropped 1.4%, with most sectors in the red except for real estate and utilities, which are considered safer during market turbulence.
- The Dow Jones Industrial Average fell 580 points (1.3%), while the Nasdaq Composite also declined 1.4%.
The sharp declines follow Monday’s steep sell-off, which has now wiped out all post-election market gains.
Trump’s Tariffs and Global Trade War
Tuesday’s market turmoil was triggered by Trump’s aggressive tariff policies, which include:
- 25% tariffs on Mexican and Canadian imports.
- 10% tariff on Chinese goods doubled to 20%.
- 10% duties on Canadian energy products.
- China imposed up to 15% in new tariffs on U.S. agricultural exports (chicken, pork, soy, beef) and tightened restrictions on U.S. businesses operating in China.
- Canada announced a $100 billion tariff package on American goods, set to roll out over the next 21 days.
- Mexico is preparing tariffs on U.S. imports, with details expected this weekend.
Retailers and Tech Stocks Hit Hard
As tariffs drive inflation concerns, retailers and major import-dependent companies are feeling the squeeze.
- Target (-4.9%) warned of “meaningful pressure” on its first-quarter profits due to tariffs and higher costs, despite beating earnings expectations.
- Best Buy (-13.9%) gave weaker-than-expected guidance, citing concerns over rising prices and declining consumer confidence.
The uncertainty surrounding higher import costs, supply chain disruptions, and global trade restrictions is putting pressure on corporate earnings, leading to lower investor confidence.
Market Uncertainty and Inflation Fears
Inflation has been a major economic concern, and Trump’s tariffs risk worsening the problem. The Federal Reserve has attempted to control inflation over the past year, but these new trade restrictions could drive prices higher, further squeezing consumer spending and corporate profits.
The ongoing stock market volatility suggests that investors remain cautious about the long-term economic impact of trade tensions. With China, Canada, and Mexico hitting back, Wall Street could face continued instability in the coming weeks.
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