Stocks drop as Trump says tariffs start Tuesday; euro gains | U.S. & World [Video]

By Caroline Valetkevitch

NEW YORK (Reuters) -U.S. stocks ended down sharply Monday, with the S&P 500 posting its biggest daily percentage drop since December 18 after U.S. President Donald Trump said 25% tariffs on Canada and Mexico will go into effect on Tuesday, while the euro strengthened after European leaders agreed to draw up a Ukraine peace plan.

U.S. indexes hit session lows after the tariff comments. The Canadian dollar and Mexican peso both hit one-month lows after the tariff news.

Trump said there was “no room left” for a deal that would avert the tariffs on Canada and Mexico. He also said reciprocal tariffs will start April 2.

“It seems that tariffs are definitely going to go through and it increases the chances of a real economic fallout. The markets are not psyched to stick around for that,” said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta.

“To say ‘no …