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.
EU lawmakers raised concerns about the digital euro project after a major failure in the ECB’s payment system, Target 2, which caused delays in transactions. Critics question the ECB's ability to manage the project, with some demanding improved systems before moving forward.
US stock futures dropped amid growing concerns over the impact of the Trump administration’s tariffs. Major stocks like Nvidia, Meta, Amazon, and Tesla saw losses. China’s retaliatory tariffs and rising recession fears added to market uncertainty. Bitcoin also fell 4%.
Walgreens Boots Alliance is going private after Sycamore Partners sealed a $10 billion deal, ending nearly a century on public markets. Struggling with competition and changing consumer habits, Walgreens aims to reinvent itself away from the pressures of being publicly traded.
Shares in European carmakers and automotive suppliers fell sharply on Tuesday after the U.S. implemented a 25% tariff on imports from Mexico, a key production hub for the automotive sector supplying the American market.
Egypt and the European Commission have signed a soft funding agreement worth 90 million euros (approximately $93.9 million) to enhance food security in the country, according to Egypt’s Ministry of International Cooperation.
China has appointed Li Xiaolong as vice minister of the Ministry of Housing and the Human Resources Ministry, tasked with overseeing key policies in housing and workforce management.
This Sunday, March 23, negotiations will take place between the US and Russia regarding the details of a ceasefire in Ukraine.
Anti-government protests erupted outside Prime Minister Benjamin Netanyahu's office, with demonstrators calling for his resignation after his announcement to oust the head of internal security, joined by relatives of hostages worried about their loved ones' fate.
Afghanistan seeks foreign investment in mining, engaging with Chinese and Kazakh diplomats to boost resource extraction. With $1 trillion in untapped minerals, Kabul aims to become a key industry player despite infrastructure and security challenges.
Ukrainian President Volodymyr Zelenskyy announced that Russia launched attacks on civilian infrastructure in Ukraine immediately after a conversation between US President Donald Trump and Russian President Vladimir Putin, during which they had agreed to halt such attacks.
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Regarding the Armenia-Azerbaijan process, we cannot forget the years of occupation, and we will not forget them, President Ilham Aliyev said in his speech at the opening ceremony of the 12th Global Baku Forum.
President Donald Trump has vowed to respond to the European Union's counter-tariffs, escalating tensions over the U.S. steel and aluminum duties that have sparked a trade dispute between the two economic powers.
Russian President Vladimir Putin agreed on Tuesday to a proposal by U.S. President Donald Trump that Russia and Ukraine cease attacking each other's energy infrastructure for 30 days, the Kremlin said following a lengthy phone discussion between the leaders.
The Russian Finance Ministry has announced that a "large privatization" initiative will be launched this year, involving the sale of more than 100 items of state property.
Russian President Vladimir Putin has given a U.S. hedge fund permission to buy securities in Russian companies from certain foreign stakeholders and authorised their future sale to two Russian funds, a presidential decree showed on Monday.
Uzbekistan has announced the sale of state shares in three major automotive companies as part of its ongoing privatization efforts.
The National Bank of Kazakhstan is launching the Gold Coin project, a digital version of an investment coin, beginning on March 17, 2025.
Apple’s iPhone, along with other foreign-branded smartphones, saw a sharp 21% decline in shipments in China this January. Economic shifts and rising competition from local brands are reshaping the market, putting pressure on international players like Apple.
China has appointed Li Xiaolong as vice minister of the Ministry of Housing and the Human Resources Ministry, tasked with overseeing key policies in housing and workforce management.
This Sunday, March 23, negotiations will take place between the US and Russia regarding the details of a ceasefire in Ukraine.
Anti-government protests erupted outside Prime Minister Benjamin Netanyahu's office, with demonstrators calling for his resignation after his announcement to oust the head of internal security, joined by relatives of hostages worried about their loved ones' fate.
Afghanistan seeks foreign investment in mining, engaging with Chinese and Kazakh diplomats to boost resource extraction. With $1 trillion in untapped minerals, Kabul aims to become a key industry player despite infrastructure and security challenges.
Ukrainian President Volodymyr Zelenskyy announced that Russia launched attacks on civilian infrastructure in Ukraine immediately after a conversation between US President Donald Trump and Russian President Vladimir Putin, during which they had agreed to halt such attacks.
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