President Trump's new 25% tariffs on imports from Canada, Mexico, and increased tariffs on Chinese goods have caused significant turmoil in the US stock market. The Dow Jones Industrial Average fell nearly 800 points, erasing all gains since the election, while the S&P 500 and NASDAQ dropped around 2%. Hard-hit sectors included automakers, with General Motors and Ford losing over 4% and 3%, respectively, and technology, with NVIDIA stocks declining. Retailers like Best Buy and Target also saw their shares fall amid fears of higher import costs and consumer prices. In retaliation, China, Canada, and Mexico have announced their own tariffs, escalating global trade tensions. Economists warn of potential higher consumer prices and prolonged market volatility. Staying informed on these developments is essential.
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00:00The stock market is reeling as President Trump's new tariffs take effect, sparking fears of
00:05an escalating trade war.
00:07Let's break down what's really happening, but first, follow Benzinga to stay informed
00:10on the latest financial news.
00:12President Trump imposed 25% tariffs on imports from Canada and Mexico, alongside with increased
00:17tariffs on Chinese goods.
00:19This move led to a significant sell-off in the U.S. stock market.
00:22The Dow Jones Industrial Average plummeted nearly 800 points, bracing all gains since
00:27the election, according to the New York Post.
00:29The S&P 500 and Nasdaq also fell by almost 2%, continuing the previous day's losses.
00:35Automakers were among the hardest hit.
00:38Shares of General Motors and Ford dropped more than 4% and 3%, respectively, as reported
00:43by ABC News.
00:44Tesla stock also declined, reflecting investor concerns about higher production costs due
00:48to the tariffs.
00:49The technology sector didn't fare much better.
00:51Nvidia stock fell sharply, contributing to the Nasdaq's decline.
00:55Retailers like Best Buy and Target saw their shares tumble amid fears of increased import
01:00costs, leading to higher consumer prices.
01:03Best Buy's CEO indicated that the price increases are highly likely as a result of the tariffs.
01:08In response to the U.S. tariffs, China, Canada and Mexico announced their own retaliatory
01:13measures, further escalating global trade tensions, as detailed by Reuters.
01:19Economists warned that these developments could lead to higher consumer prices in the
01:23U.S. and prolonged market volatility.
01:25This unfolding trade war is creating uncertainty in the markets, affecting industries from
01:30automobiles to technology.
01:32And as these events develop, staying informed is crucial.
01:35Follow Ben Zinger for the latest updates on how these tariffs impact the economy and your
01:39investments.