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.
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Georgia’s decision to indefinitely suspend the Anaklia deep-water port project has stripped the country of a historic chance to become a key link in global trade routes, according to the Transport Corridor Research Center (TCRC).
Germany’s finance minister has urged a new era of “European patriotism” to protect the continent’s economic interests, calling for state-backed companies to retain jobs in Europe and for public spending to prioritise European-made goods.
Georgia plans to cover the overwhelming majority of its natural gas consumption in 2026 through imports from Azerbaijan, according to the gas balance approved by the Ministry of Economy and Sustainable Development
Investment from Italy in Azerbaijan has reached $805m, Azerbaijan’s Energy Minister Parviz Shahbazov said as he met his counterparts in Baku.
Real Madrid have parted ways with coach Xabi Alonso, appointing former defender Álvaro Arbeloa as his replacement.
The Trump administration will suspend all visa processing for visitors from 75 countries beginning 21 January 2026, according to a State Department memo reported by media.
The U.S. has issued an urgent security notice calling all American citizens to leave Iran immediately, citing escalating protests, growing violence and widespread communication shutdowns across the country.
President Donald Trump said on Monday any country that does business with Iran will face a tariff rate of 25% on trade with the U.S., as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.
Apple will use Google’s Gemini artificial intelligence (AI) models for its revamped Siri voice assistant later this year, in a multi-year deal that strengthens the tech giants’ partnership and boosts Alphabet’s position in the race against OpenAI.
A coalition of women’s rights organisations, technology watchdogs and progressive campaigners is urging Apple and Google, owned by Alphabet, to remove the social media platform X and its associated chatbot, Grok, from their app stores.
Boeing booked more aircraft orders than Airbus in 2025 for the first time since 2018, official figures showed, even as the European manufacturer delivered more planes during the year.
U.S. oil major Chevron and private equity firm Quantum Capital Group are reportedly preparing a joint bid to acquire Lukoil’s international assets, as the sanctioned Russian energy company seeks to divest its overseas operations.
The U.S. dollar's share of global reserves fell to nearly 40% at the end of 2025, according to the International Monetary Fund (IMF), which says it's 10% lower than at the start of 2024. However, gold has risen and overtaken the dollar to be above 50% in global reserves according to the IMF data.
The U.S. dollar has strengthened against major peers on Tuesday, while the euro fell following slower-than-expected inflation in Europe. Market movements were relatively subdued as investors focused on upcoming U.S. economic data.
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