Stock market today: US stocks drop, Dow closes down amid fresh tariffs on Canada, recession fears [Video]

NEW YORK — U.S. stocks dropped on Tuesday, extending losses suffered a day earlier amid a fresh round of tariffs on Canada and concern about a possible recession.

The Dow Jones Industrial Average closed down about 475 points, or 1.15%, while the S&P 500 fell 0.75%. The tech-heavy Nasdaq ticked down 0.15%.

The selloff on Tuesday extended a days-long market decline touched off by U.S. tariffs imposed last week on Canada, Mexico and China, some of which were delayed.

President Donald Trump on Tuesday announced retaliatory measures on Canada after Ontario slapped a 25% tariff on electricity sent to the U.S., saying that he is imposing an additional 25% tariff on steel and aluminum, bringing those tariffs to 50%.

Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.

The withdrawal of the …