The Dow Sinks as Trump Trade War Escalates
The Dow Jones Industrial Average fell about 1.5% on Tuesday as stocks responded to fresh tariffs on Canada, Mexico, and China, wiping out post-election gains in the S&P 500. The tech-heavy Nasdaq Composite closed down about 0.4%, avoiding correction territory, but investors are growing increasingly concerned about the impact of Trump's trade policies. The recent escalation of tariffs has sparked fears of a growth slowdown and is putting pressure on companies like Target and Best Buy.
- As markets struggle to come to terms with the unpredictable nature of Trump's trade policies, investors are left wondering whether the administration's current priority – tariffs – will ultimately benefit or harm the economy.
- What role will geopolitics play in shaping the trajectory of this economic uncertainty, particularly if tensions between the US and its trading partners continue to simmer?