Dow closes down more than 800 points after Trump ratchets up tariffs
Stocks took a significant hit in the first trading session following President Donald Trump’s announcement of a new 15% tariff on most imported goods. This move intensified his push to impose tariffs that were previously struck down by the Supreme Court.
The Dow Jones Industrial Average plummeted by 820 points, representing a 1.6% drop, while the S&P 500 saw a 1% decline. The Nasdaq, known for its tech-heavy composition, also experienced a 1.1% decrease.
Tech stocks were particularly hard hit as advancements in artificial intelligence continued to impact the market. International Business Machines (IBM) shares closed more than 13% lower, reflecting the overall negative sentiment.
Cryptocurrency prices also took a hit on Monday, with bitcoin falling by 4.3% to reach around $64,450, marking its lowest level since February 3rd.
On the flip side, gold prices surged to a three-week high as investors sought the safe-haven asset amidst increased uncertainty in the market.
In response to the Supreme Court ruling, President Trump took to social media to express his discontent. He reiterated his criticism of the court, claiming that the ruling inadvertently granted him more power as President of the United States.
Under the Trade Act of 1974, Trump still retains the authority to impose a 15% tariff for up to 150 days to address trade imbalances with other countries.
Following the Supreme Court decision, Trump swiftly signed an executive order implementing a new 10% “global tariff” under Section 122. This tariff was later escalated to 15% on Saturday, with Trump pledging to launch further investigations in the coming months to impose additional tariffs.
Despite the setback, Trump remains undeterred, stating that the process of imposing tariffs might be longer than anticipated due to regulatory constraints.
The Supreme Court ruling invalidated a significant portion of the tariffs previously imposed by Trump under the International Emergency Economic Powers Act (IEPPA). This includes country-specific tariffs issued on “Liberation Day,” a 10% tariff on all imports, and various other measures.
While some tariffs remain unaffected by the ruling, such as the 50% levy on all steel and aluminum products, the market remains volatile as investors navigate the uncertain terrain of trade policies and their impact on the economy.
