Stock markets saw heavy selling Monday afternoon following comments from President Donald Trump indicating previously threatened trade duties were set to be imposed.
The Dow Jones Industrial Average dropped about 800 points, or 1.8%. The S&P 500 fell 2.1% and was set for its worst day of the year.
The tech-heavy Nasdaq Composite slid 3%, weighed down by a separate issue affecting Nvidia, which was already down more than 9%.
In a White House appearance Monday, the president said the clock had run out on finding concessions for America's two-largest trading partners to avoid sweeping new trade duties.
“No room left for Mexico or for Canada,” Trump said alongside Commerce Secretary Howard Lutnick. “Tomorrow, tariffs, 25% on Canada and 25% on Mexico, ... will start.”
Tariffs or customs duties are a tax on products purchased from abroad, and they are used by practically all countries
He also said previously announced "reciprocal" tariffs would be coming on April 2. And in a Truth Social post earlier in the day, Trump said tariffs on "external product" from the agriculture industry would also be imposed that day, without offering details.
Even before the president's remarks, new economic data cast fresh doubt about the solidity of the U.S. economy. A measure of manufacturing activity showed a jump in suppliers' costs, sparked in part by trade concerns.
“The incoming tariffs are causing our products to increase in price. Sweeping price increases are incoming from suppliers," one executive told the Institute of Supply Management for its monthly survey. "Most are noting increases in labor costs,” a respondent in the machinery sector said.
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