The US stock market suffered a significant drop on March 4, 2025, after President Donald Trump's decision to impose new tariffs on imports of goods from Canada and Mexico. The Dow Jones Industrial Average fell 1.47% to close at 43,197.30, while the S&P 500 lost 1.75% and the Nasdaq Composite fell 2.64%. IZ reports this with reference to Reuters.
The tariffs, which took effect Tuesday, include 25% tariffs on goods from Canada and Mexico. President Trump also announced an increase in tariffs on Chinese goods to 20%, accusing China of not doing enough to stop the supply of fentanyl to the United States.
Against this backdrop, gold (+1.95%) and silver (+2.45%) rose sharply, but oil prices fell: WTI lost 1.85% and Brent — 1.73%. Such market dynamics indicate growing investor concerns about economic stability and the consequences of the trade war for the United States and its partners.
Canadian Prime Minister Justin Trudeau has already announced the imposition of corresponding tariffs on American goods, while Mexican President Claudia Sheinbaum is preparing similar measures in response. This could lead to further escalation of trade tensions in North America and even greater losses for the stock market, reports The Wall Street Journal.
Analysts warn that these events could significantly impact the auto sector and raise prices for American consumers, worsening the economic outlook for the coming months. Investors are closely watching developments as further steps by the Trump administration could cause new waves of turbulence in the markets.
We previously wrote that the Trump team advocates for Zelensky's resignation.