U.S. stocks slashed early losses by the end of the day after President Donald Trump agreed to delay his 25% tariff on Mexican goods for a month.
After the markets closed, Trump also agreed to delay Canada’s tariffs for at least 30 days, Canadian Prime Minister Justin Trudeau tweeted. In exchange, Canada would target the flow of fentanyl across the border into the United States.
The broad S&P 500 index ended down 0.76%, or 45.96 points, to 5,994.57; the blue-chip Dow dipped 0.28%, or 122.75 points, to 44,421.91; and the tech-heavy Nasdaq shed 1.2%, or 235.49 points, to 19,391.96. The benchmark 10-year Treasury yield fell to 4.535%.
At the open, stocks tumbled, rattled by Trump’s unleashing 25% tariffs on Canada, except for oil at only 10%, and a 10% levy on goods from Mexico and China, starting Tuesday.
Investors were worried a trade war would erupt. Mexican President Claudia Sheinbaum vowed to retaliate only to agree to provide 10,000 Mexican soldiers to the border in exchange for a one-month delay to the tariff, Trump said in a post.
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