Stocks Slide as Market Reacts to Tariff Uncertainty

Stocks continued their slide Thursday as President Donald Trump’s tariff exemptions on some imports from Canada and Mexico failed to ease investor concerns.

The S&P 500 dropped as much as 2.1%, while the tech-heavy Nasdaq fell 2.8%. The Dow Jones Industrial Average lost 427 points, or 1.4%, adding to a broader market downturn. Each of the major stock indexes has now declined more than 3% for the week.

The sell-off comes just a day after a brief market rally, following Trump’s announcement that automobiles from U.S. manufacturers would be exempt from the 25% tariffs imposed on Canada and Mexico. However, Thursday’s trading session saw a sharp reversal as concerns over global trade and economic stability continued to weigh on investors.

Adding to the uncertainty, Trump announced a temporary one-month exemption for all Mexican goods covered under the USMCA trade deal, a replacement for NAFTA negotiated during his first term. Later in the day, he clarified that the exemption would also apply to Canadian goods under USMCA.

Despite these exemptions, market analysts say investors remain cautious as trade tensions and economic policies continue to shape financial markets.

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