Trump tariffs send US stock market spiraling as investors fear trade war

These tariffs further fueled the already escalating investor worries about their impact on the global economy.

Published on: Mar 5, 2025, 12:14:48 IST

By HT News Desk

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Major US stock indices fell on Tuesday when the tariffs announced by US President Donald Trump on Canada, Mexico and China came into effect.

On top of all this, a trade group representing nearly all major automakers warned that the new 25% tariffs on imports from Canada and Mexico imposed by Trump will lead to drastic price hikes. (Reuters)

These tariffs further fueled the already escalating investor worries about their impact on the global economy, news agency Reuters wrote.

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The Nasdaq closed 9.3% down from its record closing high on December 16.

The Dow Jones Industrial Average fell by 670.25 points or 1.55% to 42,520.99, the S&P 500 lost 71.57 points or 1.22% to 5,778.15, and the Nasdaq Composite fell by 65.03 points or 0.35% to 18,285.16.

Meanwhile, the MSCI's gauge of stocks across the globe fell by 9.67 points or 1.13% to 846.14, while the pan-European STOXX 600 index fell by 2.14%.

As a result, gold prices rose due to increased safe-haven demand, with spot gold going up 0.6%, reaching $2,911.88 an ounce.

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In response, China and Canada retaliated while Mexican President Claudia Sheinbaum vowed to respond likewise, but gave no specific details.

On top of all this, a trade group representing nearly all major automakers warned that the new 25% tariffs on imports from Canada and Mexico imposed by Trump will lead to drastic price hikes.

"Trump's tit-for-tat approach has heightened fears of a global trade war, pressuring risk assets while boosting safe havens," the report quoted Uto Shinohara, a senior investment strategist at Mesirow in Chicago as saying.

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Meanwhile, the the yield on the benchmark US 10-year Treasury note rose by 2.6 basis points to 4.206% after earlier falling to 4.106%, its lowest since October 21.

This was primarily as a reaction to German political political parties agreeing on a 500 billion Euro infrastructure fund, according to the report.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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