The Dow Jones Industrial Average has dropped 1300 points over the last two days as U.S. President Donald Trump moved forward with tariffs against Mexico, Canada and China, America’s most prominent trading partners.
Why It Matters
Global markets are bracing for the effect that Trump’s tariffs—and retaliatory tariffs from Canada, China and Mexico—will have on American consumers.
What To Know
The U.S. on Tuesday imposed a 25 percent tariff on goods from Mexico and Canada and increased a 10 percent tariff on China to 20 percent. Canada and China immediately retaliated, while Mexico said it will announce its response later this week.
As a result of the tariffs, the Dow dropped 1.55 percent, or 670 points, adding to a 650-point plummet on Monday. The Nasdaq closed 0.35 percent down and at its lowest was down 2 percent, briefly entering correction territory, which indicates a more than 10 percent drop in the index from its recent …