Markets sell off to start the week following Trump tariff announcements

Major stock market indices opened the week down significantly after President Donald Trump announced tariffs on Canada, China, and Mexico.

Major stock market indices opened the week down significantly after President Donald Trump announced tariffs on Canada, China, and Mexico.

The Dow Jones Industrial Average fell nearly 500 points, or about 1%. The S&P 500 dropped 1.5%, while Nasdaq 100 lost 2%. The Russell 2000, which represents smaller firms, lost about 1%. The Cboe Volatility Index, known as Wall Street’s "fear" gauge that anticipates major market swings, spiked above 19.

On Saturday, Trump announced 25% tariffs on all goods imported from Canada and Mexico — America's two largest trade partners — with a carve-out of 10% levies on Canadian energy imports. He also announced a 10% levy on all goods coming from China. Late Sunday, Trump acknowledged there could be some "pain" for U.S. consumers as a result of the tariffs but said it would be "worth the price." They were set to take effect Tuesday.

Shares in auto firms, many of which rely on production facilities in Mexico and Canada, saw significant declines: General Motors' stock was down as much as 7%, while Ford was down as much as 4%.

Other major consumer firms selling off included Chipotle, Nike, Lululemon and alcohol distributor Constellation Brands.

https://www.nbcnews.com/business/markets/markets-reacts-trump-tariff-announcements-monday-rcna190408

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