Trump’s tariffs are sending the stock market fall

The stock market fell Monday after President Donald Trump escaped tariffs in Canada, Mexico and China, causing threats of retaliation and set the stage for a trade war.

Dow Jones Industrial Average slipped about 550 points, or 1.25%, in early trade Monday. S.& P 500 fell 1.5%and the tech-heavy Nasdaq dropped 2%.

Dealers demonstrated their jitters with a sale of US car companies that have deep ties to suppliers in Canada and Mexico. Shares of General Motors fell 6%, while Ford saw its share price jump 4%.

The market route is expanding around the world. Japan’s Nikkei index fell 2.5% Monday, and the pan-European stoxx 600 fell approx. 1%.

On Saturday, Trump imposed 25% duty on products from Mexico and Canada as well as 10% duties on goods from China. The tariffs are set to take effect on Tuesday, the White House said.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum both responded within hours of the announcement and promised to reciprocate.

Trudeau said Canada will implement 25% tariffs of $ 155 billion of US goods, while Sheinbaum said she has instructed officials in her government to implement what she called Plan B, “which includes customs and non-duty measurements to defense of Mexico’s interests. ”

The tariffs imposed by the White House could raise prices for a number of products ranging from avocado to tequila to gasoline, experts previously told ABC News. However, the award impact remains unclear as companies within the supply chain could choose to take on some tax burden, they said.

Potential retaliatory garments issued by Canada and Mexico would make it more difficult for US exporters to compete in these markets and raise the possibility of weaker sales.

In a number of social media posts over the weekend, Trump said the tariffs are targeting Canada, Mexico and China to host the manufacture and transport of illegal drugs ending in the United States in a Truth Sunday Sunday, Trump called on the three lands to address his concerns while acknowledging that duty can cause some financial difficulty in the United States

“Will there be some pain? Yes, maybe (and maybe not!). But we will do America well again and it will all be worth the price to be paid,” Trump wrote.