U.S. stocks tumbled on Monday ahead of the expected rollout of President Donald Trump’s sweeping tariffs set to take effect Wednesday. The tariffs, which Trump said will impact “all countries,” sent markets into a global downturn.
The Dow Jones Industrial Average dropped 315 points (0.75%), while the S&P 500 declined 1.1%. The tech-heavy Nasdaq saw the steepest fall at 1.75%. Tesla, led by Trump advisor Elon Musk, plummeted nearly 6%.
Global markets followed suit. Japan’s Nikkei fell over 4%, South Korea’s KOSPI dropped 3%, and European markets also slumped, with the British FTSE 100 down 1.18%, Germany’s DAX losing 1.82%, and France’s CAC 40 declining 1.76%. Meanwhile, gold—often a safe-haven asset—hit a record $3,128 per ounce.
Trump defended the tariffs over the weekend, saying they would be “kinder” than the unfair treatment the U.S. has received in trade deals. The measures include a 25% auto tariff on imported passenger vehicles, SUVs, minivans, cargo vans, and light trucks, set to take effect April 3.
Analysts expect car prices to rise as importers pass the costs to consumers. Even U.S.-made vehicles could see price hikes due to higher costs for imported parts and increased demand for domestic alternatives. However, Trump downplayed concerns, insisting automakers will benefit. “American automakers or international automakers, if you’re talking about them, are going to build in the United States,” he said.
The markets remain on edge as investors brace for the full impact of Trump’s trade measures.
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