Markets tumbled Monday, with losses accelerating in the afternoon after President Donald Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect. Earlier in the session, stocks were already under pressure following a weaker-than-expected February report on a key manufact
Stocks tumbled Monday as investors prepared for the midnight deadline on President Donald Trump’s proposed tariffs on Canada, Mexico, and China.
The Dow Jones Industrial Average closed down 650 points, or 1.48%, at 43,191. The index had plunged nearly 900 points in afternoon trading before recovering some losses. The broader S&P 500 fell 1.76%, while the Nasdaq Composite dropped 2.64%, bringing its total decline since Trump took office to approximately 6.5%.
Trump Defends Tariffs
"Tomorrow, tariffs—25% on Canada and 25% on Mexico," Trump declared during a White House press conference. "What they have to do is build their car plants and other things in the United States, in which case they have no tariffs."
Trump stated that both countries had "no room left" for negotiations, emphasizing that the tariffs were a necessary response to economic imbalances. "They're all set. They go into effect tomorrow," he confirmed.
Market Volatility and Investor Concerns
Following Trump’s remarks, Wall Street’s fear gauge, the VIX index, surged to its highest level this year.
“The uncertainty surrounding the tariffs has wiped out the gains from the ‘Trump bump’ following the presidential election,” said Gustavo Flores-Macias, a professor of government and public policy at Cornell University.
Commerce Secretary Howard Lutnick, speaking alongside Trump, suggested that global companies could avoid tariffs by investing in U.S. production. He pointed to Taiwanese chipmaker TSMC, which announced a $100 billion U.S. investment earlier Monday.
Economic and Business Impact
Analysts at Goldman Sachs warned that while tariffs might increase demand for American-made goods by making imports more expensive, they could also raise costs for U.S. businesses and trigger foreign retaliatory measures.
“Tariff increases will raise production costs for domestic producers and could lead to countermeasures against U.S. exports, both of which could hurt economic growth,” Goldman Sachs analysts wrote in a note.
The stock market selloff coincided with the latest Institute for Supply Management (ISM) survey, which showed that while manufacturing activity remained in expansion territory, it had slowed—with tariff concerns dominating business responses.
Sony reports an 18% rise in profit for the fiscal year ending March 31, driven by strong demand in music and gaming sectors, despite a slowdown in its financial segment.
Burberry, the iconic British luxury brand, has announced global job cuts and revealed a better-than-expected profit as part of its turnaround strategy under CEO Joshua Schulman.
Initially planned solely for cargo transportation, the Alat airport will now receive international status. The construction will cover an area of 750 hectares and significantly simplify transport and logistics opportunities for investors.
Venezuela's economy saw a year-over-year growth of 9.3% in the first quarter of 2025, according to the country's central bank. This marks a slight increase compared to the 9.1% growth rate recorded in the same period last year.
During a high-level meeting, officials from Kyrgyzstan and Russia emphasized the growing economic partnership between the two nations, highlighting a 14.5% increase in mutual trade and reaffirming their commitment to further expansion.
Vietnam and Thailand have officially upgraded their ties to a strategic partnership, marking a significant step forward in regional diplomacy.
Indian Minister of Petroleum and Natural Gas, Hardeep Singh Puri, announced that India is opening up 200,000 square kilometers of its sedimentary basin for oil and gas exploration, inviting Russian companies to participate.
Colombian President Gustavo Petro announced on May 16 that his country has started the process of joining the New Development Bank of BRICS.
Ministers in Libya’s Government of National Unity (GNU) are resigning one by one amid mounting protests in Tripoli, Libya Press agency reports
The US Supreme Court on Friday paused President Donald Trump’s attempt to carry out deportations using the 1798 Alien Enemies Act, siding with a group of Venezuelan immigrants in Texas who argued they were at risk of sudden removal under the rarely used wartime law.
Ukrainian President Volodymyr Zelenskyy met Turkish President Recep Tayyip Erdogan in Ankara on May 15, with discussions reportedly focusing on upcoming peace talks between Ukrainian and Russian delegates in Istanbul.
Israeli Prime Minister Benjamin Netanyahu said the war in Gaza will not stop until Hamas is destroyed, following the release of US-Israeli soldier Edan Alexander.
Qatar signed a landmark agreement with U.S. aerospace giant Boeing on Wednesday to acquire 160 aircraft for Qatar Airways, a deal valued at $200 billion. The signing took place in Doha during the visit of U.S. President Donald Trump.
Delegations from Russia and Ukraine met in Türkiye for their first direct peace talks since 2022, with discussions lasting under two hours.
The number of billionaires in the UK has dropped for the second year in a row, hitting the lowest level in over a decade, according to The Sunday Times Rich List 2025.
The European Bank for Reconstruction and Development (EBRD) has approved a trade finance line of up to $5 million (€4.4 million) for Unibank under its Trade Facilitation Programme (TFP). The agreement, signed during the EBRD’s 2025 Annual Meeting in London.
Vietnam has approved a $1.5 billion project by the Trump Organization and Kinhbac City to build golf courses, resorts, and homes. Work is set to begin this quarter and finish by mid-2029.
S&P says easing tariff tensions between the US and China has improved macroeconomic conditions by lowering uncertainty, boosting markets, and reducing risks, though global trade challenges still weigh on credit conditions.
The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), is enhancing access to finance for micro, small, and medium-sized enterprises across Central Asia and Mongolia.
Vietnam and Thailand have officially upgraded their ties to a strategic partnership, marking a significant step forward in regional diplomacy.
Indian Minister of Petroleum and Natural Gas, Hardeep Singh Puri, announced that India is opening up 200,000 square kilometers of its sedimentary basin for oil and gas exploration, inviting Russian companies to participate.
Colombian President Gustavo Petro announced on May 16 that his country has started the process of joining the New Development Bank of BRICS.
Ministers in Libya’s Government of National Unity (GNU) are resigning one by one amid mounting protests in Tripoli, Libya Press agency reports
The US Supreme Court on Friday paused President Donald Trump’s attempt to carry out deportations using the 1798 Alien Enemies Act, siding with a group of Venezuelan immigrants in Texas who argued they were at risk of sudden removal under the rarely used wartime law.
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