The U.S. stock market took a sharp hit after Donald Trump announced he was doubling tariffs on Canadian steel and aluminum to 50%. The Dow Jones Industrial Average fell by 600 points, while the S&P 500 dropped 0.6% following Trump’s Truth Social post, where he called Canada “one of the highest tariffing nations anywhere in the world.”
Financial experts have expressed concerns over the market’s instability, with Art Hogan of B. Riley Wealth stating that ongoing tariff uncertainty is weighing heavily on investors. Investment banks like Goldman Sachs have revised U.S. growth forecasts downward, with recession risks increasing due to unpredictable trade policies. Moody’s Analytics now estimates a 35% chance of a recession, calling the figure “uncomfortably high.”
Trump’s tariffs are part of an escalating trade war with Canada, which has retaliated by imposing its own taxes on U.S. electricity and other goods. Analysts warn that unless a clear trade strategy emerges, economic uncertainty will continue to impact financial markets and investor confidence.
