Dow Jones and S&P 500 Decline Amid Trump Tariffs Announcement

Market Reaction to Trump’s Tariffs

Stocks skidded in afternoon trading after the White House signaled that President Trump on Wednesday would announce more tariffs, specifically targeting U.S. auto imports. The S&P 500 dropped 64 points, or 1.1%, to close at 5,712, while the Dow Jones Industrial Average fell 0.3% and the Nasdaq Composite nosed down 2% as investors pulled back from major technology players.

• General Motors shares sank 3.2%
• Stellantis, parent company of Chrysler, dropped 3.5%

The manufacturing plants and supply chains of Detroit automakers are spread across North America, thus additional tariffs could raise their costs and crimp profits. Tesla shares, which have slumped this year due to disappointing sales and consumer dissatisfaction over CEO Elon Musk’s involvement with the Trump administration, fell nearly 6% and are down 33% this year. Consumers may feel the impact of new import duties, with estimates suggesting vehicle costs could rise between $2,000 and $12,200 for certain models.

Broader Implications of Tariffs on the Stock Market

The implications extend beyond the auto sector as investors are rattled by Trump’s protectionist trade policies. The U.S. is scheduled to announce a range of tariffs on April 2, including 25% duties on imports from Mexico and Canada, along with sweeping matching levies on a number of U.S. trading partners.