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Dow Plunges More Than 500 Points After Trump Announces Tariffs On Steel, Aluminum Imports


Dow Plunges More Than 500 Points After Trump Announces Tariffs On Steel, Aluminum Imports

The Dow dropped more than 500 points on Thursday afternoon following President Trump’s announcement that his administration was imposing a 25 percent tariff on imported steel and 15 percent on aluminum.

“We’ll be signing it next week. And you’ll have protection for a long time in a while,” Trump said.

“You’ll have to regrow your industries, that’s all I’m asking.”

Trump’s controversial decision to impose tariffs is expected to bring a strong backlash from global U.S. trading partners such as China, with some Republicans already pushing back on the move.

“It would be very bad for consumers, it would raise costs for all kinds of products, it would destroy more jobs than it saves in steel, and it would invite retaliation from other countries,” Sen. Pat Toomey (R-Pa) said Thursday.

“Tariffs are taxes paid by American businesses and American families, and new tariffs would jeopardize some of the opportunities we successfully created through tax reform,” Senate Finance Committee Chairman Orrin Hatch (R-Utah) said earlier this week.

“This is the first shot across the bow over a trade war,” said Art Hogan, chief market strategist at B. Riley FBR. “And nobody wins a trade war.”

CNN Money adds:

Beyond worries about retaliation, the tariff news drove concerns about rising costs for companies that rely heavily on aluminum and steel, like auto and plane makers. Shares of Boeing (BA), General Motors (GM) and Ford (F) fell about 3% apiece.

Concerns about trade come at an already shaky time on Wall Street. The S&P 500 and Dow fell about 4% in February, their worst month in two years. Fears about inflation and soaring bond yields caused a surge in volatility, including two 1,000-point plunges for the Dow.

The market had come back as investors focused on the strong economy and booming corporate profits. But stocks fell sharply again on Tuesday and Wednesday. Turbulence has picked up as well. The VIX (VIX) volatility index soared 15% on Thursday.


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