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.
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.
Bank of America (BofA) said the recent volatility in Turkish markets has so far had only a limited inflationary impact, stressing that Türkiye’s economic management remains in control.
Euro zone business activity accelerated to its fastest pace in seven months in March, driven by a moderation in the long-running downturn in manufacturing, according to a survey. However, growth in the services sector slowed slightly.
Israel's parliamentary finance committee approved the 2025 state budget late on Sunday, paving the way for a final parliamentary vote before the March 31 deadline, crucial to preventing the government's collapse.
The U.S. auto industry is preparing for the impact of new trade policies, including 25 percent tariffs, set to take effect in April after a 30-day delay.
Poland has submitted a judicial reform plan to European legal experts, aiming to reverse PiS-era changes criticized by the EU and unlock frozen funds. The move comes ahead of presidential elections, with a Tusk-backed candidate leading in polls.
The U.S. has proposed a final peace framework to end the Russia-Ukraine war, offering a ceasefire, territorial compromises, security guarantees for Ukraine, and renewed economic ties with Russia, according to talks held in Paris.
Russia and Iran have signaled their commitment to deepen energy cooperation by working on new overland gas corridors, according to a statement from the Russian Cabinet.
Pakistan shut the Wagah border, expelled Indian defence attachés and warned of war over water on Friday after rejecting India’s move to suspend the Indus Waters Treaty.
Citing sustained cross-border terrorism and a recent deadly attack in Jammu and Kashmir, India has decided to suspend the Indus Waters Treaty with Pakistan, a decision that marks a significant shift in regional water diplomacy.
China has rolled out the world’s first 10-gigabit (10G) fixed broadband network in Xiong'an New Area, promising ultra-fast speeds and low latency through cutting-edge optical infrastructure.
The Holy Fire ceremony stands as one of Christianity's most enduring and mysterious rituals, drawing thousands of pilgrims to Jerusalem each year.
Pope Francis's relationship with Azerbaijan has evolved significantly over the years, characterized by diplomatic exchanges, promotion of religious tolerance, and peace advocacy in the Caucasus region.
Russia launched a major missile and drone assault on Kyiv overnight on April 24, killing at least twelve people and injuring 90, including children and a pregnant woman, according to Mayor Vitali Klitschko.
China’s pivot away from U.S. liquefied petroleum gas under new tariffs is shaking global energy flows, slashing demand, and fuelling a scramble for alternatives across Asia, with Middle Eastern suppliers and rival buyers seizing the moment.
President Donald Trump on Thursday signed an executive order aimed at boosting the deep-sea mining industry, marking his latest attempt to boost U.S. access to nickel, copper and other critical minerals used widely across the economy.
Uzbekistan and Iran have agreed to establish a Joint Business Council aimed at fostering development of business ties and facilitating the resolution of issues between entrepreneurs from both countries.
Brussels has fined Apple and Meta over €700 million combined, launching its first crackdown under the Digital Markets Act aimed at curbing big tech’s power and boosting competition in the digital economy.
The Trump administration is considering reducing tariffs on Chinese imports, aiming to ease tensions with Beijing as trade negotiations continue, a source familiar with the matter said on Wednesday.
Iran informed China on Wednesday about ongoing nuclear negotiations with the US, expressing a commitment to diplomacy despite past setbacks and urging stronger bilateral cooperation under their 25-year strategic agreement.
Poland has submitted a judicial reform plan to European legal experts, aiming to reverse PiS-era changes criticized by the EU and unlock frozen funds. The move comes ahead of presidential elections, with a Tusk-backed candidate leading in polls.
The U.S. has proposed a final peace framework to end the Russia-Ukraine war, offering a ceasefire, territorial compromises, security guarantees for Ukraine, and renewed economic ties with Russia, according to talks held in Paris.
Russia and Iran have signaled their commitment to deepen energy cooperation by working on new overland gas corridors, according to a statement from the Russian Cabinet.
Pakistan shut the Wagah border, expelled Indian defence attachés and warned of war over water on Friday after rejecting India’s move to suspend the Indus Waters Treaty.
Citing sustained cross-border terrorism and a recent deadly attack in Jammu and Kashmir, India has decided to suspend the Indus Waters Treaty with Pakistan, a decision that marks a significant shift in regional water diplomacy.
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