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.
South Korea’s new president Lee Jae-myung wasted no time addressing economic concerns, launching his first cabinet meeting with an urgent focus on reviving the economy and supporting struggling households.
Canadian manufacturers and union leaders are warning of job losses and sales disruptions after the U.S. raised tariffs on Canadian steel and aluminum to 50%, prompting Ottawa to prepare retaliatory measures.
The Government of Ghana has signed a $2 billion memorandum of understanding with key energy partners to extend oil production licenses for the Jubilee and TEN fields through 2040, aiming to boost output, increase gas supply, and drive infrastructure development.
The S&P 500 barely budged Wednesday as weak job and service sector data revealed the economic fallout from President Trump’s trade war tactics.
In May 2025, Türkiye’s annual inflation rate declined to 35.41%, down from 37.86% in April and falling short of the market forecast of 36.1%. This represents the lowest rate recorded since November 2021, as price increases slowed across almost all categories.
A man drove a car into a group of people in the southern German city of Passau on Saturday. Police say the motive may be personal and have not ruled out that the act was deliberate.
Russia carried out a large-scale air attack on the eastern Ukrainian city of Kharkiv overnight and into Saturday evening, killing at least four people and injuring more than 60 others, including a baby, according to local officials.
Chinese Vice Premier He Lifeng will visit the UK from June 8–13 for the first round of China-U.S. economic and trade consultations. Talks will include U.S. Treasury and Commerce Secretaries and Trade Representative Jamieson Greer.
U.S. President Donald Trump has warned that there could be “serious consequences” if Elon Musk provides financial support to Democratic candidates challenging Republicans who back Trump’s tax-cut bill, signalling a sharp turn in their previously cordial relationship.
The Development Bank of Latin America and the Caribbean (CAF) announced Saturday a significant boost to its commitment to ocean health, pledging an additional $2.5 billion in investments aimed at protecting marine ecosystems and fostering sustainable blue economic activities.
A bridge collapse in the Vygonichsky district of Russia’s Bryansk region, near the Ukrainian border, caused a train derailment and a traffic accident early Sunday, killing at least seven people and leaving 30 injured, according to emergency services.
Ukraine’s Security Service (SBU) has confirmed it carried out a third targeted attack against the Crimean Bridge, also known as the Kerch Bridge, early Tuesday morning, marking a new escalation in the ongoing conflict with Russia.
A strong 6.3 magnitude earthquake shook Japan’s Hokkaido prefecture early Monday, causing no reported injuries or damage, and no tsunami warning was issued, officials confirmed.
U.S. President Donald Trump and Chinese President Xi Jinping are expected to speak this week to discuss recent trade tensions, White House press secretary Karoline Leavitt said.
Peace talks between Russia and Ukraine ended abruptly in Istanbul on Monday, lasting just over an hour amid mounting tensions following a major Ukrainian drone strike on Russian strategic bombers and renewed pressure from the U.S. for a breakthrough.
Global food commodity prices experienced a notable decline in May, driven by significant drops in the cost of grains, sugar, and vegetable oils, the United Nations' Food and Agriculture Organization (FAO) reported on Friday.
Germany’s new government has launched a major program aimed at boosting investment and helping Europe’s largest economy recover after two years of decline.
The European Central Bank has reduced its three key interest rates by 25 basis points, aligning with expectations and reflecting progress toward its inflation target.
Centrica, owner of British Gas, has agreed to a £20 billion deal with Norway’s Equinor to supply nearly 10% of the UK’s gas needs annually for the next decade, supporting energy security while paving the way for future hydrogen integration.
Tesla’s shares declined by about 14.2% on Thursday, reducing the company’s market value by roughly $152 billion, as Elon Musk and Donald Trump publicly exchanged criticisms on social media.
A man drove a car into a group of people in the southern German city of Passau on Saturday. Police say the motive may be personal and have not ruled out that the act was deliberate.
Russia carried out a large-scale air attack on the eastern Ukrainian city of Kharkiv overnight and into Saturday evening, killing at least four people and injuring more than 60 others, including a baby, according to local officials.
Chinese Vice Premier He Lifeng will visit the UK from June 8–13 for the first round of China-U.S. economic and trade consultations. Talks will include U.S. Treasury and Commerce Secretaries and Trade Representative Jamieson Greer.
U.S. President Donald Trump has warned that there could be “serious consequences” if Elon Musk provides financial support to Democratic candidates challenging Republicans who back Trump’s tax-cut bill, signalling a sharp turn in their previously cordial relationship.
The Development Bank of Latin America and the Caribbean (CAF) announced Saturday a significant boost to its commitment to ocean health, pledging an additional $2.5 billion in investments aimed at protecting marine ecosystems and fostering sustainable blue economic activities.
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