Wall Street experienced a significant downturn late Monday as President Donald Trump declared the imposition of 25% tariffs on imports from Canada and Mexico. This surprise move came without prior notice, leaving markets unprepared for the sudden policy shift.
Trump emphasized that Canada and Mexico had no opportunity to prevent the tariffs from taking effect on Tuesday. \"They're going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,\" he stated at the White House.
The announcement had an immediate impact on the stock market. The S&P 500 lost 1.75% to close at 5,850.31 points, while the Nasdaq Composite fell by 2.64% to end at 18,350.19. The Dow Jones Industrial Average wasn't spared, dipping 1.47% to settle at 43,197.30.
Currency markets also reacted swiftly. Both the Canadian dollar and the Mexican Peso plummeted to a one-month low against the U.S. dollar, reflecting investor concerns over the potential economic ramifications of the tariffs.
Business leaders and analysts are closely monitoring the situation to assess the long-term effects on trade relations and market stability. The unexpected tariff implementation underscores the volatility and unpredictability inherent in international economic policies.
Reference(s):
cgtn.com
