Stocks fall in early trading Tuesday as Trump’s tariffs take effect [Video]

NEW YORK — The stock market fell in early trading on Tuesday, just hours after the Trump administration’s long-promised tariffs took effect.

The Dow Jones Industrial Average dropped nearly 500 points, or 1.1%; while the S&P 500 fell 0.8%. The tech-heavy Nasdaq inched down 1.1%.

The policy taxes imports from Mexico, Canada and China — the three largest trading partners of the United States — meaning that it could raise prices for everything from gasoline to avocados to iPhones.

Shares of retail giant Target fell 4.5% in early trading on Tuesday, following an earnings release from the company that cited “tariff uncertainty” as a potential impediment for the business. Walmart’s stock price dipped 1% on Tuesday, while Amazon shares fell 2%.

Shares of Best Buy plummeted more than 13% on Tuesday morning. The sharp drop came hours after Best Buy CEO told analysts that price increases are “highly likely” as a result of the tariffs.

Higher costs for car …