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US stock market plunges as Trump's tariffs spark fears about a trade war
Traders work on the floor of the New York Stock Exchange (NYSE) in the Financial District in New York City on March 4, 2025.
(
Timothy A. Clary
/
AFP via Getty Images
)
U.S. stock markets plummeted on Tuesday morning as a new global trade war began.
China and Canada announced new retaliatory measures on Tuesday after President Trump's long-promised tariffs took effect overnight. Trump imposed a 25% levy on most imports from Canada and Mexico , with an additional 10% tariff on Canadian energy exports. Tariffs on Chinese goods were increased from 10% to 20%.
U.S. investors continued a selloff that had started on Monday after Trump announced that there was "no room left" for negotiation with Mexico or Canada.
The Dow fell 1.8%, or more than 770 points in mid-morning trading on Tuesday. The Nasdaq and S&P 500 also dropped more than 1.5%. The price of bitcoin fell below $83,000, shedding all of its gains from a weekend rally after Trump said he would create a U.S. "strategic reserve" of cryptocurrencies, including Bitcoin.
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Restrictions were imposed during the country's longest government shutdown. Airlines can resume their regular flight schedules beginning Monday at 6 a.m. Pacific. -
Members of the House, including some Republicans, have forced a vote as early as Tuesday to release unclassified files held by the government. -
Trump called Rep. Marjorie Taylor Greene, R-Ga., a "traitor" after his revoking political endorsement of her. Greene said Sunday his words can "put my life in danger."
Canada, Mexico, and China are the country's three largest trading partners. The escalating trade war is likely to result in consumers paying higher prices for a wide range of products, including fruits and vegetables, flat-screen TVs, and auto parts.
Shares of major
U.S. automakers
Ford and GM also plunged on Tuesday. So did the shares of
Best Buy
and
Target
, as those large retailers warned that the new tariffs
could increase the prices
their customers pay.
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