The US stock market fell due to the inevitability of Trump’s trade war

On Monday, March 3, the American Dow Jones index fell by 1.48%, the S&P 500 index by 1.76%, and the Nasdaq index by 2.64%, as U.S. President Donald Trump did not abandon his idea of imposing tariffs on imports from Canada, Mexico, and China. This was reported by CTV News, as conveyed by UNN.

Details

It concerns a 25% tariff on goods from Canada and Mexico, as well as a 10% tariff on goods from China, which had previously been set at 10%.

The decline on Monday marked the culmination of two challenging weeks for Wall Street. After the S&P 500 set a record last month following a series of earnings reports from major American companies that exceeded expectations, the market began to fall after weaker-than-expected reports on the U.S. economy, including a couple of reports showing that American households are becoming much more pessimistic about inflation due to the threat of tariffs.

It is noted that Donald Trump imposed tariffs in the early days of his second presidency, but postponed them for a month after reaching agreements with Canada and Mexico to combat drug smuggling. They will take effect on March 4.

The most shocking thing is that manufacturers are observing a decrease in new orders. Prices, meanwhile, have risen amid discussions about who will pay for Trump’s tariffs.

Demand has decreased, production has stabilized, and layoffs have continued as panelist companies experience the first operational shock from the tariff policy of the new administration.

On Wall Street, there were hopes that the President of the United States would use the threat of tariffs as a negotiating tool and that ultimately he would adopt a potentially less destructive policy for the global economy and trade.

The recent market downturn has particularly hit Nvidia and some other previously leading sectors hard. On Monday, they fell even further: Nvidia dropped by 8.8%, while Elon Musk’s Tesla fell by 2.8%.

There was even a collapse in the stock of companies related to the cryptocurrency economy, which had surged sharply the day before. They jumped after Trump announced that his administration was moving forward with a cryptocurrency strategic reserve.

Reminder

Donald Trump announced the introduction of 25% tariffs on imports from the EU, including cars. The President of the United States accused the European Union of creating a bloc to “rob” the United States.

China is studying and developing appropriate countermeasures in response to the US threat to impose additional 10-percent tariffs on Chinese products under the pretext of fentanyl.

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