Stock Markets Plunge as Tariffs Target Canada, Mexico, and China
Stock markets in Toronto and New York tumbled Monday following Donald Trump’s tariff announcements. The Dow Jones fell 1.48%, while the Nasdaq dropped 2.64%. The S&P 500 lost 1.76%, marking its biggest decline since December.
Toronto’s composite index fell 1.54%, closing at 25,000.57 points. Energy stocks plunged 5.1%, and tech stocks dropped 3.4%.
Canadian Dollar and Key Stocks Hit
The Canadian dollar dipped below 69 cents USD before recovering slightly, ending down 0.1%. Quebec-based companies like Bombardier (-6.8%), TFI International (-4.7%), and BRP (-3.7%) saw significant losses.
Trump’s Tariff Announcements
Trump warned Canada and Mexico they have “no room to maneuver” to avoid new tariffs. He also signed an order raising Chinese import tariffs from 10% to 20%.
Fentanyl Concerns Drive Tariffs
Trump cited insufficient action against fentanyl trafficking as a reason for tariffs. Canada and Mexico face 25% tariffs, while China faces additional 10% duties.
Bond Market Reactions
The 10-year U.S. Treasury yield fell to 4.16%, down from 4.21% on Friday. The two-year yield also dropped to 3.95% from 3.99%.
Tech Sector Impact
Nvidia shares fell 8.69% after Singapore launched an investigation into its chip shipments to sanctioned countries.
Investor Nervousness Rises
The VIX “fear index” surged to its highest level since December, reflecting growing market anxiety.
Industrial Concerns
A U.S. industrial production index highlighted rising concerns over prices and demand, adding to market pressures.
Operational Shock
The ISM survey warned U.S. industries face their “first operational shock” due to new import taxes.
Conclusion
Trump’s tariff policies have rattled global markets, with stocks, currencies, and bonds all feeling the impact. Investors remain cautious as tensions escalate.
