Markets reverse gains as White House confirms 104% China tariffs – National
After starting the day with major rallies, North American stock markets reversed course to erase their early gains on Tuesday as the White House confirmed it’s ramping up tariffs on China.
The S&P/TSX composite index was down 146.90 points at 22,712.56.
In New York, the Dow Jones industrial average was up 9.06 points at 37,974.66. The S&P 500 index was down 18.62 points at 5,043.63, while the Nasdaq composite was down 85.04 points at 15,518.23.
Markets have been falling since last Thursday as they reacted to Trump’s sweeping round of tariffs on a wide swath of countries, with market watchers eyeing the growing possibility of a recession.
“The last three days have been very challenging for markets and for investors,” said Anish Chopra, managing director with Portfolio Management Corp.
“The markets are absorbing the impact of the tariffs on the global economy, on oil prices, trade, GDP growth in various countries, as well as on GDP growth globally.”
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Before the latest tariff news on China, markets around the world were higher with rallies on Asian and European markets.
It’s the latest example of the volatility that’s been a key feature of financial markets amid a steady stream of tariff headlines, with stocks often swinging wildly between days and even hours.
Trump indicated Monday that a deal could be imminent with South Korea, and there’s hope he could negotiate with other global players as well.
“We are likewise dealing with many other countries, all of whom want to make a deal with the United States,” Trump said on social media.
This sparked optimism in investors that more deals could be reached and the tariff impact on the global economy lessened, Chopra said.
The Canadian dollar traded for 70.42 compared with 70.29 cents US on Monday.
The May crude oil contract was down US$0.91 at US$59.79 per barrel, and the May natural gas contract was down 17 cents US at US$3.48 per mmBTU.
The June gold contract was up US$17.50 at US$2,991.10 an ounce and the May copper contract was down six cents US at US$4.13 a pound.
— With files from The Associated Press
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