Mar 13, 08:43 AM

Dow Drops Nearly 600 Points Amid Trump's 50% Tariffs on Canada, S&P 500 and Nasdaq Decline

The Dow Jones Industrial Average extended its losses, falling nearly 600 points on Tuesday as President Donald Trump escalated a trade war with Canada by announcing additional tariffs on steel and aluminum imports. The move came in response to Ontario's decision to impose a 25% levy on electricity exports to the U.S., prompting Trump to increase tariffs on Canadian steel and aluminum to 50% effective Wednesday. The market's downturn was exacerbated by broader concerns about a potential U.S. economic recession. Citigroup strategists downgraded their outlook on U.S. stocks to neutral, citing a pause in U.S. exceptionalism and anticipating weaker economic data in the coming months. The S&P 500 and Nasdaq also saw declines, with the Nasdaq experiencing its worst day since September 2022 on Monday. In response to the market volatility, Delta Air Lines revised its first-quarter earnings and revenue forecasts downward, attributing the change to weakening domestic demand. Delta's CEO, Ed Bastian, noted a significant shift in consumer sentiment in February, with reduced spending and business travel.