00:00The stock market is reeling as President Trump's new tariffs take effect, sparking fears of
00:05an escalating trade war.
00:07Let's break down what's really happening, but first, follow Benzinga to stay informed
00:10on the latest financial news.
00:12President Trump imposed 25% tariffs on imports from Canada and Mexico, alongside with increased
00:17tariffs on Chinese goods.
00:19This move led to a significant sell-off in the U.S. stock market.
00:22The Dow Jones Industrial Average plummeted nearly 800 points, bracing all gains since
00:27the election, according to the New York Post.
00:29The S&P 500 and Nasdaq also fell by almost 2%, continuing the previous day's losses.
00:35Automakers were among the hardest hit.
00:38Shares of General Motors and Ford dropped more than 4% and 3%, respectively, as reported
00:43by ABC News.
00:44Tesla stock also declined, reflecting investor concerns about higher production costs due
00:48to the tariffs.
00:49The technology sector didn't fare much better.
00:51Nvidia stock fell sharply, contributing to the Nasdaq's decline.
00:55Retailers like Best Buy and Target saw their shares tumble amid fears of increased import
01:00costs, leading to higher consumer prices.
01:03Best Buy's CEO indicated that the price increases are highly likely as a result of the tariffs.
01:08In response to the U.S. tariffs, China, Canada and Mexico announced their own retaliatory
01:13measures, further escalating global trade tensions, as detailed by Reuters.
01:19Economists warned that these developments could lead to higher consumer prices in the
01:23U.S. and prolonged market volatility.
01:25This unfolding trade war is creating uncertainty in the markets, affecting industries from
01:30automobiles to technology.
01:32And as these events develop, staying informed is crucial.
01:35Follow Ben Zinger for the latest updates on how these tariffs impact the economy and your
01:39investments.
