Shares Fall As Trump’s Tariff Hikes Roil Markets

U.S. President Donald Trump's tariff plans sparked a global market selloff, though a last-minute suspension of levies on Mexican goods provided some relief, João da Silva, Nick Edser, and Natalie Sherman reported for BBC News

The S&P 500 closed 0.76% lower, while the Nasdaq dropped 1.2%.

After steep losses earlier in the day, news of the reprieve helped stocks recover partially, with the Dow Jones Industrial Average closing down just 0.3%.

The rebound followed a sharp decline after Trump announced over the weekend that he would impose tariffs on imports from Canada, Mexico, and China, while also vowing that levies on the European Union would "definitely happen."

Investors fear that these tariffs will hurt corporate earnings and slow global economic growth, though many still hope Trump will not follow through on all his threats.

The S&P 500 closed 0.76% lower, while the Nasdaq dropped 1.2%. Canadian Prime Minister Justin Trudeau held talks with Trump regarding the tariffs set to take effect on his country at midnight.

After markets closed, Trudeau announced that the two leaders had agreed to pause the tariffs for 30 days.

Simon French, an economist at Panmure Liberum, noted that investors had been "pricing in" a deal with Canada, speculating that Trump's threats were "simply a negotiating tactic by the administration."