U.S. stock markets experienced a significant decline as a new global trade war unfolded. Following President Trump’s implementation of long-anticipated tariffs, China and Canada retaliated with their own measures. These included a 25% levy on most imports from Canada and Mexico, alongside a 10% tariff on Canadian energy exports. Additionally, tariffs on Chinese goods were raised from 10% to 20%. This led to a continued selloff by U.S. investors, resulting in the Dow dropping over 770 points, with the Nasdaq and S&P 500 also experiencing significant declines.
As the trade tensions escalated, the price of bitcoin plummeted below $83,000 after Trump announced plans to create a U.S. “strategic reserve” of cryptocurrencies. The impact of this trade war is expected to affect consumers directly, leading to higher prices on various products like fruits, vegetables, flat-screen TVs, and auto parts. Major U.S. automakers such as Ford and GM, as well as retailers like Best Buy and Target, saw their shares plunge as they warned of potential price increases for customers due to the new tariffs.
With Canada, Mexico, and China being the country’s top three trading partners, the repercussions of this trade dispute are likely to have far-reaching effects on both businesses and consumers, emphasizing the importance of trade policies and their implications on the global economy.
