New York (AFP) – Wall Street stocks tumbled Tuesday after the United States proceeded with new tariffs on Canada, Mexico, and China, exacerbating worries that higher inflation will prompt a recession. US President Donald Trump, who had suspended for a month an earlier plan for 25 percent tariffs on Canada and Mexico, implemented the levies this time around. His administration also doubled tariffs on China.
All three countries have either imposed their own retaliatory tariffs or said they will, deepening worries about a broad and messy trade war. The Dow Jones Industrial Average finished down 1.6 percent at 42,520.99. The broad-based S&P 500 declined 1.2 percent to 5,778.15, while the tech-rich Nasdaq Composite Index shed 0.4 percent to 18,285.16.
“The longer the tariffs last or are in effect, the longer that this market will decline,” Sam Stovall of CFRA Research said. “Investors are worried that we are headed for a recession and a bear market.” Of the 11 industrial sectors in the S&P 500, 10 finished in negative territory, with technology flat.
The biggest losers in the Dow included Boeing, which lost 6.6 percent, 3M, which dropped nearly five percent, and American Express, which sank 4.1 percent. Slumping electric car maker Tesla, owned by Trump ally Elon Musk, dropped 4.4 percent following disappointing sales in China. Best Buy tumbled 13.3 percent despite reporting solid earnings as the electronics retailer signaled they expect price hikes due to tariffs.
© 2024 AFP
