On Friday, almost immediately after the Trump administration announced that tariffs against China, Mexico, and Canada will begin on Saturday, the stock market plunged.
White House press secretary Karoline Leavitt told reporters that tariffs of 25 percent would be implemented against Canada and Mexico, and a 10 percent tariff against China.
Right after the announcement, the Dow Jones Industrial Average, NASDAQ, and S&P 500 all suffered losses. As of publication time, the three indexes had fallen 350 points, 87 points, and 30 points, respectively.
Leavitt told reporters that the full details of the tariffs would be released when they are implemented, but all three countries have said they would respond. Canada has pledged to retaliate with tariffs of its own in a “forceful but reasonable” manner, according to Prime Minister Justin Trudeau.
“I won’t sugarcoat it—our nation could be facing difficult times in the coming days and weeks,” Trudeau said to an advisory council on Canada-U.S. relations Friday. “I know Canadians might be anxious and worried, but I want them to know the federal government—and indeed, all orders of government—have their backs.”
Mexico also plans to institute its own tariffs against the United States, and China said it will “firmly defend” its interests. Regardless, Trump claims that his tariffs will force other countries to comply with his policies and raise money for the federal government, even though they’re more likely to hurt the economy as well as the average American. Beginning this weekend, Americans, whether they support Trump or not, may experience some sticker shock if they go shopping.
#Stock #Market #Plummets #Trump #Announces #Tariff #War
