Tue, 04 Mar 2025

Tue, 04 Mar 2025 US stock markets fall amid trade war fears

Canada's Prime Minister Justin said Donald Trump's decision to impose import taxes was "very dumb".

* US stock markets have plummeted due to concerns over President Trump's tariffs on Canada, Mexico, and China.
* The S&P 500 index fell to its lowest level since November, with a 1.2% drop.
* Canadian Prime Minister Justin Trudeau called Trump's decision "a very dumb thing to do" and vowed to retaliate with $30bn worth of tariffs.
* China has also announced retaliatory measures, including 10-15% tariffs on US agricultural goods.
* The Dow Jones Industrial Average dropped 1.5%, while the Nasdaq fell 0.35%.
* American retailers and carmakers were among the hardest hit, with Best Buy's share price closing over 13% lower.
* Trump has threatened to impose reciprocal tariffs, which could be tailored to each country's trade balance and taxes.
* Analysts warn that tariffs could lead to economic recessions, push up prices for US households, and have a knock-on effect on consumers globally.
* UK Chancellor Rachel Reeves said the UK will be affected by slowing global trade, slower growth, and higher inflation even if it avoids tariffs.
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