U.S. stock indices declined during Friday trading as the global trade war between the United States and several other nations intensified.
President Donald Trump announced a new 35% tariff on Canada and also threatened to raise tariffs on other countries.
In a post on Truth Social yesterday, Trump said the tariffs on Canada were a response to its failure to cooperate in halting the flow of fentanyl into the United States. He warned that the tariffs could rise further if Canada retaliates.
Trump also told NBC that he plans to impose sweeping tariffs of 15% to 20% on other countries — a rate higher than the current 10% that investors have grown accustomed to in recent months.
Brazilian President Luiz Inácio Lula da Silva said he is seeking a diplomatic resolution to the tariff dispute with the U.S., but pledged to respond in kind if the tariffs are implemented on August 1.
On the trading front, the Dow Jones Industrial Average fell by 0.7% (equivalent to 330 points) to 44,320 points by 16:27 GMT, while the broader S&P 500 index dropped by 0.4% (equivalent to 28 points) to 6,252 points, and the Nasdaq Composite index declined by 0.2% (equivalent to 44 points) to 20,586 points.
