Updated March 04, 2025 at 16:20 PM ET
U.S. stock markets plummeted on Tuesday as a new global trade war began.
China and Canada on Tuesday after President Trump's took effect overnight. Trump imposed a 25% levy on most , with a separate 10% tariff on Canadian energy exports. Tariffs on Chinese goods were increased from 10% to 20%.
U.S. investors continued a sell-off that had started on Monday after Trump announced that there was "no room left" for negotiation with Mexico or Canada. The Dow fell 1.55%, or about 670 points on Tuesday after already falling nearly 1.5% on Monday.
Meanwhile, the S&P lost 1.2% while the Nasdaq lost 0.35%.
Canada, Mexico and China are the country's three largest trading partners. The escalating trade war is likely to result in consumers paying higher prices for a wide range of products, including fruits and vegetables, flat-screen TVs and auto parts.
Shares of major Ford and GM also plunged on Tuesday. So did the shares of and , as those large retailers warned that the new tariffs their customers pay.
Copyright 2025 NPR
