U.S. stocks plunged by nearly 900 points on Monday amid fears of a recession over President Donald Trump’s tariffs on Canada, Mexico, and China, escalating a trade war.
The Dow Jones Industrial Average closed down 890 points — 2% — while the S&P 500 closed down 2.7%. The Nasdaq plummeted 4%, amounting to more than $1 trillion in losses, according to Bloomberg.
Elon Musk will likely be watching Tesla’s stock, which declined 15%. United Airlines and Delta each fell more than 4%.
Also on Monday, China started imposing tariffs on U.S. imports — including chicken, wheat, and soybeans. Canada’s Prime Minister-elect Mark Carney took a swipe at Trump on Sunday.
“America is not Canada. And Canada never, ever, will be part of America in any way, shape or form,” Carney said. “We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves.”
The stock plummet comes just one day after Trump did not rule out the possibility that the U.S. will head into a recession this year amid uncertainty and market turbulence over his chaotic tariff policy.
“I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods, it takes a little time. It takes a little time, but I think it should be great for us,” Trump said.
Trump was then asked if Americans can expect prices to rise due to his tariffs.
“You may get it. In the meantime, guess what? Interest rates are down,” he said.
As Trump placed tariffs on Canada, Mexico, and China; he also downplayed the stock market crashing over the last several days.
“You have to do what’s right,” he said.
Since Inauguration Day, the Dow Jones Industrial Average has fallen 2.5%. The S&P 500 has dropped 5% over that period, while the Nasdaq has plummeted 10%.
