US stocks fall on Trump tariff concerns, European defense firms soar [Video]

US stocks closed sharply lower Monday, after President Donald Trump slapped fresh sanctions against China and levies on Mexico and Canada neared imposition, while European defense shares soared as the European Union sought increased military spending over Ukraine.

The White House said Trump had signed an executive order raising tariffs on China to 20 percent, shortly after Trump seemed to rule out any change to the planned 25 percent tariffs against Mexico and Canada.

“The tariffs, you know, they’re all set, they go into effect tomorrow,” Trump said at the White House when a reporter asked whether the levies against the two US trading partners would come into force on Tuesday.

The Dow Jones Industrial Average slipped 1.5 percent, while the broad-based S&P lost 1.8 percent, and the tech-rich Nasdaq took a harsher tumble, closing down 2.6 percent.

The CBOE Volatility Index, or VIX — colloquially known as Wall Street’s …