US stocks slid on Tuesday as investors weighed Canada and China’s response to President Donald Trump’s delivery of new tariffs amid nerves over the prospect of a deepening trade war.
The Dow Jones Industrial Average (^DJI) fell about 1%, while the benchmark S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) shed around 0.9%, as all three indexes took a leg lower to extend their recent sell-off.
Rising fears of a full-on trade war drove Monday’s sell-off after the president said there was “no room left” for Canada or Mexico to strike a deal to mitigate promised tariffs.
Stocks are retreating as markets assess the likely impact of Trump’s broad tariffs on America’s top trading partners. The measures — fresh 25% tariffs on Canada and Mexico, and a doubling in China duties to 20% — were signed into effect at midnight ET on Tuesday.