Global markets tumbled as US President Donald Trump imposed sweeping tariffs on imports from Canada, Mexico, and China, sparking fears of a prolonged trade war. US stock futures sold off sharply, with Dow futures plunging over 670 points, S&P 500 futures falling nearly 2%, and Nasdaq futures dropping close to 600 points. European markets also took a hit, with the Stoxx 600 sliding 1.3% and auto stocks suffering steep losses.
Canada swiftly retaliated with tariffs on $106 billion worth of American goods, with Prime Minister Justin Trudeau delivering an emotional speech highlighting Canada’s long-standing alliance with the US. “We have fought and died alongside you in your darkest hours,” he said, warning that these tariffs would hurt American jobs, manufacturing, and consumer prices. The first round of Canadian tariffs will target $30 billion in US goods, with an additional $125 billion set to follow.
The tariffs, which include a 25% duty on most Canadian exports and a 10% levy on energy resources, come amid escalating trade tensions. The US-Canada trade relationship, worth over $2.5 billion daily, faces significant strain, raising concerns over economic stability in both countries. As markets brace for further volatility, global investors are watching closely for any signs of resolution or further escalation.
