The US stock market took a sharp dive after Trump announced he’s doubling tariffs on two major Canadian goods, sparking concerns.
The US stock market has taken a significant hit following President Donald Trump’s recent tariff announcement.
The news that he plans to double tariffs on two major Canadian goods has caused concern among investors and analysts alike.
This move is part of his ongoing trade disputes with Canada and other countries.
Trump plans to double tariffs on Canadian goods.
President Trump has decided to increase tariffs on steel and aluminum imported from Canada.
Initially, these tariffs were set at 25 percent. However, starting tomorrow, they will rise to 50 percent.
Trump shared this information via his social media platform, Truth Social.
He stated that he has instructed his Secretary of Commerce to implement these changes.
He posted on his social media platform Truth Social: “I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.”
This announcement has led to immediate reactions in the stock market.
When the news broke, the Dow Jones Industrial Average fell by around 600 points. The S&P 500 index also dropped by 0.6 percent.
This sharp decline reflects the market’s uncertainty regarding ongoing trade policies.
US stock market plunges following Trump’s decision to double tariffs on two major Canadian goods
The market has been struggling for the past few weeks, primarily due to concerns about trade policies.
Art Hogan, a chief market strategist at B. Riley Wealth, discussed the situation with CBS MoneyWatch.
He noted that the market has faced three weeks of losses, driven by uncertainty regarding trade.
Unlike previous tariffs, which were implemented more strategically, these new tariffs appear to affect a broader range of goods.
“The market has been down for three weeks in a row, largely driven by uncertainty about where trade policy lands, full stop.
“We’ve been inundated with tariff announcements that, unlike the 2018 playbook, are actually being applied universally versus the surgical approach we saw with term 1.0.
“Unless and until we know where the goal posts actually are on trade and tariffs, this uncertainty will continue to weigh on markets.”
Hogan pointed out that without clear guidelines on trade and tariffs, the market will likely continue to face challenges. Investors are wary of how these changes will affect their investments and the overall economy.
Goldman Sachs lowers growth forecast amid tariff concerns.
In light of the tariff announcement, investment bank Goldman Sachs has revised its growth forecast for the year.
They have lowered their prediction from 2.2 percent to 1.7 percent.
This change indicates a growing concern about economic stability as a result of Trump’s trade policies.
Goldman Sachs has also increased the likelihood of a recession to 20 percent.
Olu Sonola, head of US regional economics at Fitch Ratings, emphasized the seriousness of the situation.
He stated that the threat of a recession is something people cannot ignore. Similarly, Moody’s Analytics has placed the risk of a recession at a concerning 35 percent.
Experts worry about future economic stability and growth.
The growing uncertainty surrounding trade policies is leading many experts to worry about the future of the economy.
Mark Zandi, chief economist at Moody’s Analytics, described the recession risk as “uncomfortably high.”
He warned that this figure is rising, indicating that the economic outlook remains shaky.
The ongoing tariff war between the US and other countries, particularly Canada, has created an unstable environment for businesses.
Many companies are unsure how to proceed with their operations amid changing policies.
This uncertainty can lead to reduced investments and slower economic growth.
