Tariffs Are a Self-Inflicted Economic Catastrophe that will make America hated by most of the world. Russia and its allies are loving this.
Dow drops over 1,400 as US stocks lead worldwide sell-off after Trump’s tariffs ignite
Financial markets around the world are reeling Thursday following President Donald Trump’s latest and most severe set of tariffs, and the U.S. stock market is taking the worst of it so far.
The S&P 500 was down 4% in midday trading, more than other major stock markets, and at its bottom in the morning was on track for its worst day since COVID struck in 2020. The Dow Jones Industrial Average was down 1,412 points, or 3.3%, as of 11:50 a.m. Eastern time, and the Nasdaq composite was 5.1% lower.
In President Donald Trump’s first term, apparel and footwear makers shifted manufacturing out of China to avoid tariffs. Now they’re being pummeled as Trump targets the same nations they moved to.
A tariff of 46% on goods from Vietnam is particularly painful for companies such as Nike Inc., Adidas AG and Lululemon Athletica Inc., which produce significant amounts of merchandise in the country. Levies of 49% on Cambodia and more than 30% on Indonesia and Thailand are also problematic. Trump says the tariffs will push companies to relocate manufacturing to the US.
America’s biggest trading partners promised retaliation for President Donald Trump’s massive tariff announcement. The first major response has come in — from Canada.
Canadian Prime Minister Mark Carney said that Canada will levy a 25% counter-tariff on vehicles imported from the United States that are not compliant with the United States-Mexico-Canada Agreement (USMCA) in response to US tariffs on Canadian vehicles and auto parts that went into effect today.
“As I told President Trump during our call last week, Canada will respond to the US auto tariffs, and today, I’m announcing that the Government of Canada will be responding by matching the US approach with 25% tariffs on all vehicles imported from the United States that are not compliant with CUSMA, our North American Free Trade Agreement,” Carney told reporters in Ottawa, using the Canadian acronym for the USMCA.
The prime minister said there were no talks scheduled between him and Trump, but he would talk to the US president again “if appropriate.” Carney also said Canada’s counter-tariffs would not affect auto parts.
Though Carney said Canada still considers the US an ally in defense and security, his country “must be looking elsewhere to expand our trade, to build our economy and to protect our sovereignty.”
Where will all this end? Look for a World Wide RECESSION.
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