The Dow plunges 700 points because now Trump’s trade war is real

U.S. stocks plummeted again connected Tuesday, with the Dow Jones Industrial Average dropping up to 700 points arsenic President Donald Trump’s recently imposed 25% tariffs connected goods from Canada, Mexico, and China prompted retaliatory measures from immoderate of the affected countries.

China imposed further duties of up to 15% connected definite U.S. products. Ottawa retaliated with 25% tariffs connected $30 cardinal worthy of U.S. goods starting Tuesday, rising to screen $125 cardinal of merchandise successful 21 days. Canada’s provinces are taking their ain actions, and irate citizens are boycotting U.S. products.

At astir 12:35 p.m., successful New York, the Nasdaq Composite dropped 0.6%, portion the Dow Jones Industrial Average shed 578 points oregon 1.3%. The S&P 500, which had its worst time of the year connected Monday, dropped 1%.

Tesla (TSLA) banal declined much than 4.5% owed to rising fears astir tariffs among investors — car prices whitethorn beryllium driven higher by the duties. The institution besides has a ample beingness successful China, including a large assembly plant, and truthful whitethorn beryllium susceptible to retaliation by Beijing.

Additionally, Bank of America (BAC) reduced its terms people for the banal to $380 from $490 portion maintaining a Neutral rating. Morgan Stanley expert Adam Jonas yesterday had designated Tesla banal arsenic a “Top Pick” successful the U.S. automotive assemblage and raised his terms people to $430.

Target’s (TGT) banal fell 4.5% aft it said it expects a “meaningful” year-on-year diminution successful first-quarter profits compared and CEO Brian Cornell warned that the caller tariffs whitethorn punctual the retailer to summation prices arsenic soon arsenic adjacent week. The company’s fourth-quarter net beat Wall Street’s expectations.

Best Buy (BBY) banal dropped 12% aft institution executives warned that the duties could summation the prices of goods it sells and could trim its comparable income if they enactment successful spot for a afloat year. The electronics retailer reported fourth-quarter results that exceeded Wall Street’s expectations.

Chipotle (CMG) shares declined owed to concerns astir the edifice chain’s dependence connected avocados that are 50% sourced from Mexico. The company has said its divers proviso concatenation could help it withstand the tariffs.

— Francisco Velasquez and Josh Fellman contributed to this article.

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