The U.S. stock market opened Monday with sharp declines after President Donald Trump launched tariffs against Canada, China and Mexico over the weekend.
The Nasdaq tumbled 1.86% or 401 points, leading the declines among the three major U.S. indexes. The Dow Jones Industrial Average tumbled about 1.1%, or around 489 points. The S&P 500 fell roughly 1.8% or 89.6 points.
Trump signed an executive order Saturday putting 25% tariffs on imports from Canada and Mexico, while Chinese products face an additional 10% tariff. Canadian energy imports will only be tariffed at 10%.
The U.S. duties on all three countries will be fully in force starting at 12:01 a.m. EST on Tuesday.
Officials in Canada and Mexico announced they would retaliate by implementing their own import duties on U.S. goods.
Related: Mexico and Canada strike back with retaliatory tariffs on US
The trade war affected stock markets around the world.
The United Kingdom’s benchmark FTSE 100 was down 1.1% by 6:40 a.m. EST, set for its worst day since Oct. 8, according to Reuters.
Germany’s DAX 40 index dropped around 2% on Monday from Friday’s 21,802 record high, according to IG.
The Toronto stock exchange was down about 2% or 500 points in early trading Monday.
Taiwan’s Taiex market exchange fell 4.4% at the open. Japan’s Topix index was down as much as 2.3%, and Korea’s Kospi fell as much as 2.4%.
Trump posted on Truth Social Monday morning that he had spoken with Canadian Prime Minister Justin Trudeau and they would talk again at 3 p.m. EST. He also raised new issues, such as Canada’s limits on the U.S. banks in the country.
“Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada,” Trump said.
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