The US stock market went into freefall once trading opening after a big sell-off on Wall Street in response to President Donald Trump’s trade war on Mexico, Canada and China.
Once markets opened, the Dow Jones Industrial Average dropped 432 points, or one per cent, while the S&P 500 lost one per cent, and the Nasdaq saw 0.5 per cent wiped out..
Yesterday saw a steep decline, with the S&P 500 posting its largest daily loss since December 2025 at 1.8 per cent down.
This reaction from investors comes after the White House’s implementation of 25 per cent tariffs on imports from Mexico and Canada, with an additional 10 per cent levy being imposed on China.
Following this news, London’s FTSE 100 Index opened sharply lower in Tuesday morning trading with the blue chip share index dropped 0.6 per cent, down 50.8 points at 8820.5, soon after opening.
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Investors appear spooked at Trump’s trade war
GETTY / BUSINESS INSDER GRAPH
During a press conference yesterday, Trump confirmed he will continue with his plans to levy tariffs on imports coming in from the United States’ “very unfair” neighbouring countries.
In reaction, Clark Geranen, the chief market strategist at CalBay Investments, said: “While Tuesday’s tariffs are a go, it remains very unclear on just how long these tariffs will remain,”
“We tend to believe these are more of a negotiation tactic and not the start of a long and drawn out reciprocal trade war,” he said. “Still, in these situations, investors sell first and ask questions later.”
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