US Stocks Close Lower Amid Trade War Escalation
London, 4 March, 2025
As rising trade tensions between the US and its major trading partners shook the markets, US stocks ended Tuesday's trading session significantly lower, continuing losses from the previous day. Gains in tech companies helped to offset the wider losses, as the Nasdaq dipped 0.3% and the Dow and S&P 500 sank 1.5% and 1.2%, respectively. Key word of today's day, "volatility"!
President Trump's new tariffs, which are 25% on goods from Canada and Mexico and an additional 10% on imports from China, went into effect today. This sparked retaliation from China and Canada and increased concerns about a deteriorating trade war. On Sunday, Mexico is anticipated to make its announcement.
Trump's speech to Congress is currently being watched carefully by traders for any clues about the direction of trade policy. Tesla, meanwhile, fell 4.4% after statistics showed that its February car sales in China fell by almost 50% year over year. Ford's and GM's stock fell 2.9% and 4.6%, respectively, as the car industry was burdened by growing tariff-induced expenses. (Source: Trading Economics, edit by The Decision Maker Finance editors)
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