U.S. and global markets drop amid new trade war concerns

Stocks in the United States fell at the start of the day on Monday as the country braced for a new chapter of a tariff-based global trade war.

The Dow plummeted more than 1%, or 500 points. The technology-heavy Nasdaq lost 2%, while the broader S&P 500 index fell 1%.

Over the weekend, President Trump announced fresh tariffs on the United States' top trading partners. Imports from Canada and Mexico will pay a 25% duty beginning Tuesday, while those from China will pay 10%. With a 10% tax, energy imports from Canada will be lower.

American automakers' equities were among the most significant losers this morning, with Ford down 3%, General Motors down 5%, and Tesla down 4%. Automakers maintain a complicated supply chain network spanning the United States, Canada, and Mexico. Many cars are manufactured in Mexico or Canada before being exported to the United States.

Global stock markets have fallen, the dollar has gained, and oil prices have risen.

Asian markets declined, with Taiwan, South Korea, and Japan faring the worst. The Nikkei Index in Japan fell by roughly 2.5%, while Hong Kong's Hang Seng fell by 1.3% in early trading.

The President's tariff threats also shook European markets. The pan-European STOXX 600 index fell 1.4% Monday morning. Germany's DAX index was down 2%. The FTSE 100 index, which monitors the top hundred businesses listed in London, dipped 1.25% at the start of trade.

President Trump indicated Sunday night that new tariffs on the EU would "definitely happen" but would take a softer stance on the United Kingdom, stating he had a good connection with Prime Minister Keir Starmer but that the UK "might" suffer penalties.

Meanwhile, the dollar climbed against several currencies, including the euro, the Mexican peso, and the Canadian dollar.