Stocks fell Monday in turbulent trading linked to President Donald Trump's tariff announcements.
The Dow Jones Industrial Average fell 0.3%, while the broader S&P 500 declined 0.8%. The tech-heavy Nasdaq 100 lost 1.2%. The Cboe Volatility Index, known as Wall Street’s “fear” gauge, which anticipates major market swings, spiked above 18 — approaching highs seen over the last two years.
Gold climbed to as much as $2,818.27 per ounce, a record. Bitcoin prices also climbed after sell-off overnight and into Monday morning.
On Saturday, Trump announced 25% tariffs on all goods imported from Canada and Mexico — America's two largest trade partners — with a carve-out of 10% levies on Canadian energy imports. He also announced a 10% levy on all goods coming from China.
Late Sunday, Trump acknowledged there could be some "pain" for U.S. consumers as a result of the tariffs but said it would be "worth the price."
They had been set to take effect Tuesday. By noon Monday, Trump announced the tariffs against Mexico would be suspended.
Some GOP officials said the tariffs represented negotiating tactics. Sen. Eric Schmitt, R-Mo., told “Meet the Press” moderator Kristen Welker, “I think these tariffs specifically, Kristen, are meant to bring Canada and Mexico to the table for the fentanyl that is streaming into our communities.”
He added: “The fact is these countries are taking advantage of us all along the while we’ve got fentanyl streaming into our country. So Mexico has a choice. They can choose to trade with the United States or continue to cozy up with the cartels. It’s pretty simple.”
