Stock markets opened with losses on Tuesday after President Trump's sudden tariffs on Canadian and Mexican goods came into effect, spurring retaliation from two top US trading partners.
The Dow Jones industrial average fell 431 points after the opening bell, losing 1% at the start of trading Tuesday. The S&P 500 index fell by 0.9%, while the Nasdaq composite fell by 0.7%.
Stock ended with sell-off on Monday after Trump told reporters that he would proceed with two delayed 25% tariffs on goods from Canada and Mexico. Both countries are committed to dealing with import taxes on US goods and other economic penalties that could lead to a significant rise in prices for Americans.
The US imports billions of dollars worth of agricultural products, energy, auto parts, wood and other important goods from Canada and Mexico. The economies of all three countries have been deeply integrated in the 30 years since the establishment of the North American Free Trade Agreement, which was renewed under the US-Mexico-Canada Agreement (USMCA) under Trump.
Trump argues that sudden tariffs are essential to realigning trade ties between the United States and its North American partners and stopping the flow of fentanyl and immigration across the US border.
But leaders in Canada and Mexico have accused Trump of derailing productive economic ties over concerns that he is not exaggerated or baseless.
Canadian Prime Minister Justin Trudeau announced Monday night that his country would impose a 25% retaliatory tariff on $30 billion in US goods. Ontario Premier Rob Ford also threatened to halt energy exports to the United States on Monday if Trump proceeded with tariffs.
Updated at 9:53am on EST
