Tue Mar 04 18:06:54 UTC 2025: ## Trade War Tanks Wall Street; Stocks Erase Post-Election Gains

**New York, March 4, 2025** – A escalating trade war between the U.S. and its major trading partners sent Wall Street into a tailspin Tuesday, wiping out all gains in the S&P 500 since the last presidential election. New tariffs imposed on goods from China, Canada, and Mexico triggered a sharp market downturn, extending a recent slump fueled by economic weakness.

The S&P 500 plummeted 1.7%, with every sector experiencing losses. The Dow Jones Industrial Average shed 722 points (1.7%), and the Nasdaq composite fell 1.5%, putting it on track for a 10% correction from its recent high. European markets also suffered significant drops, while Asian markets saw more moderate declines.

The newly implemented tariffs include a 25% tax on imports from Canada and Mexico, a 10% duty on Canadian energy products, and a doubled 20% tariff on Chinese imports. China retaliated with tariffs up to 15% on key U.S. agricultural products. Canada announced plans to impose tariffs on over $100 billion in American goods.

Retail giants Target (-5.4%) and Best Buy (-14.2%) reported weaker-than-expected results, citing the tariffs as a significant factor impacting their profitability and forecasting price increases for consumers. Best Buy’s CEO, Corie Barry, highlighted the dependence on China and Mexico as major sources of their products.

The broader economic outlook is darkening, with worries about inflation, decreased consumer spending, and the impact of tariffs on corporate profits. While companies in the S&P 500 reported strong fourth-quarter earnings growth (18%), current-quarter expectations have been slashed to 7% from initial forecasts of 11%. The Federal Reserve, previously signaling further interest rate cuts, is now expected to hold steady amid the economic uncertainty created by the trade war. Treasury yields also fell, reflecting growing concerns about the direction of the U.S. economy.

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