Wall Street was caught up in after President Trump's tariffs came into effect Tuesday, with the Dow Jones Industrial Arage plunging at about 1.9%, about 1.9%, at 11am ET.
The Broad-based S&P 500 and Tech Heavy Nasdaq fell nearly 2% as all three major indices extended their losses on Monday.
Canada and Mexico were hit by 25% tariffs, but China's duties doubled to 20%.
Automakers like General Motors and Tesla have been exposed to much more trade tensions and saw a sharper decline, but Best Buy also fell after reporting revenue.
Gold prices skyrocketed as investors sought safe haven assets, and the CBOE Volatility Index (VIX), often referred to as Wall Street's “fear gauges,” rose to reflect the uncertainty of the rise.
However, the Treasury's yields are stable, with a 10-year yield of 4.178%, the lowest this year.
Canada quickly responded to US imports worth $100 billion with 25% tariffs, but the Mexican president announced on Sunday that the country's retaliation will be detailed.
China wasted no time responding. Beijing has imposed fresh tariffs on US agricultural products, targeting major exports such as cotton, corn, soybeans and wheat, lowering commodity prices.
Furthermore, in China, US biotechnology company Illumina has banned the export of gene sequencers, cutting its shares by more than 2%.
The Chinese government has also filed a formal complaint with the World Trade Organization.
Economists warn that tariff costs are likely to be passed on to American consumers, raising prices everything from groceries to cars.
Some traders hope that negotiations will escalate the trade war, but as global tensions grow, the market is blessed with ongoing volatility.
