Following President Donald Trump’s tariff decision on Saturday, the Dow Jones Industrial Average opened much lower then reversed losses Monday afternoon.
The Nasdaq 100 lost 0.7%, the broader S&P 500 stayed 0.4% lower, and the 30-stock Dow saw a slight daytime gain. Wall Street’s fear indicator for significant market swings, the Cboe Volatility Index, reached its highest level since January 2023 when it surged past 17.
The price of gold reached a record $2,818.27 an ounce. Following a sell-off that lasted through the night and into Monday morning, bitcoin prices also increased.
With a 10% levie on Canadian energy imports, Trump imposed a 25% tariff on all commodities imported from Canada and Mexico, the two biggest trading partners in the United States, on Saturday. A 10% tax on all Chinese-sourced goods was also announced by him.
Trump said late Sunday that the tariffs might cause some “pain” for American consumers, but that it would be “worth the price.”
On Tuesday, they were supposed to go into effect. Trump declared that the tariffs against Mexico would be halted by Monday at noon.
The tariffs, according to some GOP leaders, were negotiating ploys. “I believe that these tariffs specifically, Kristen, are meant to bring Canada and Mexico to the table for the fentanyl that is streaming into our communities,” Sen. Eric Schmitt, R-Mo., told Meet the Press moderator Kristen Welker.
The truth is that these nations have been exploiting us while fentanyl is flooding into our nation, he continued. Mexico, then, has an option. They have the option of sticking close to the cartels or trading with the US. It’s quite easy.