US STOCKS HAVE fallen to its lowest point since the US election last November, as the US tariffs on Canada, Mexico and China take effect. 

The “post-election bump” of the markets’ gains has been wiped out, with stocks ending at its lowest level since US President Trump was elected. A new trade war between the US and its key trading partners are now been reflected on the stock markets.

Trump imposed 25% tariffs on imports from Mexico and Canada, in addition to doubled levies – from 10% to 20% – imposed on imports from China. Goods worth roughly $2bn cross the borders of the US, Canada and Mexico each day.

The move was followed by retaliatory action from Canada and China, in which they announced retaliatory import taxes on US goods. Mexico’s President Claudia Sheinbaum said the country would announce a response which would include tariff and non-tariff measures.

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At the close of Wall Street’s trading yesterday, the S&P 500 fell 1.2% while the Dow Jones Average slid 1.6%, and the Nasdaq Composite fell 0.35%.

Of the 11 S&P sectors, ten posted losses – with financials, industrials and consumer staples leading the decline. 

Kathleen Brooks, research director at XTB, said: “Investors don’t like tariffs, and they are deeply uncomfortable with President Trump’s new world order, which is weighing om market sentiment.”

“More tariffs are expected from the US in the coming weeks, including for the EU and reciprocal tariffs, which could keep investors on edge in the short term.”

With reporting from PA