Stocks fell on Monday as markets reacted to President Trump’s decision to impose tariffs on America’s three largest trading partners, sparking concerns a trade war could hit consumer and corporate finances.
Trump over the weekend ordered the imposition of a 25% tariff on Canadian and Mexican imports and a 10% levy on Chinese goods. Canadian oil and energy imports won a carve-out and will be subject to a lower 10% import tax.
On Monday morning, Trump announced the Mexican tariffs would be delayed by one month after Mexican President Claudia Sheinbaum agreed to deploy the military to the U.S.-Mexico border. Canadian and Chinese tariffs are scheduled to go into effect just after midnight on Tuesday morning.
U.S. stocks stocks came off their earlier lows after the delay of tariffs on Mexican products but remained firmly in negative territory in recent trading.
Goldman Sachs analysts modeled out how the tariffs could impact U.S. markets, and estimated the levies may reduce the S&P 500’s fair value by …