Dow Drops 650 Points as Trump Confirms Tariffs on Mexico and Canada
Wall Street took a beating as the Dow plunged nearly 650 points after Trump’s latest tariff announcement. The bombshell? A 25% tax on Canadian and Mexican imports, starting Tuesday. Tech stocks got hammered, with Nvidia cratering 8.8% and Tesla skidding 2.8%. The VIX fear gauge hit yearly highs while Treasury yields retreated to 4.18% as investors scrambled for safety. Markets hate surprises, and this triple-whammy of tariffs just opened a whole new can of economic worms.
Wall Street took a beating Monday as the Dow plunged nearly 650 points amid a perfect storm of market-rattling news. The selloff intensified after former President Trump confirmed new tariffs on Canada and Mexico would kick in Tuesday, sending traders into a full-blown panic mode. The S&P 500 tumbled 1.8% to 5,849.72, while the tech-heavy Nasdaq got absolutely crushed, dropping 2.6%.
Trump’s tariff announcement couldn’t have come at a worse time. The market was already digesting a disappointing manufacturing report when news broke that Canadian and Mexican imports would face a hefty 25% tax. Because apparently, what this economy really needed was more expensive stuff. Chinese imports aren’t getting off easy either – their tariffs are jumping to 20% on Tuesday. Trump made it clear that no further negotiations would be entertained with Canada and Mexico to avoid the tariffs. The grim announcement erased hopes after previous negotiation delays had suggested a less severe outcome. International users received error code 451 when attempting to access market analysis on regional news sites.
Markets reel as Trump slaps 25% tariffs on Canada and Mexico, with China facing 20% hit – because inflation needed a boost.
The VIX, Wall Street‘s favorite fear gauge, shot up to its highest level this year. Tech stocks took it on the chin, with Nvidia plunging 8.8% and Tesla skidding 2.8%. Even crypto-related stocks got hammered, with Coinbase dropping 4.6%. Kroger shareholders had their own headache to deal with as the stock fell 3% after their CEO decided to call it quits. The crude oil contract dropped $1.39 to settle at $68.37 per barrel, adding to the market’s woes.
Internationally, it was a different story. Chinese manufacturers actually reported better orders in February, and Hong Kong’s Hang Seng managed to eke out a 0.3% gain. The real winner? Mixue Bingcheng, whose stock soared a whopping 43% on its market debut. European markets showed resilience as Germany’s DAX surged 2.6% despite the global uncertainty.
European defense stocks hit record highs, because nothing says “investment opportunity” quite like global tension. Treasury yields dropped to 4.18% as investors rushed to safety, while oil prices sank 2.4% after OPEC decided to turn up the production spigot.
The S&P 500’s post-Election Day gains have now shrunk to a measly 1%, proving that even Wall Street’s party eventually needs a reality check. Market experts are predicting more volatility until Trump’s policies shift toward growth rather than restrictions.
UBS Global Wealth Management is trying to stay optimistic about the medium term, but today’s market action suggests investors aren’t buying it. Between the manufacturing slowdown, tariff threats, and general market jitters, Wall Street’s having a Monday that feels more like a never-ending Sunday night.
