The tariff war initiated by the 47th president of the United States, Donald Trump, is now reverberating on Wall Street. The American equity markets suffered heavy losses on Thursday's trade.
This comes to pass after Donald Trump, after pressing pause on his flat 25 per cent tariff on Canada & Mexico for a month, decided to open the floodgates, and the tariffs to kick in.
The US equity markets have been seesawing between extremes recently, and a reflection of the same has been exhibited just this week.
After a trading session, with major gains on Wednesday, the equity markets and indices collapsed on Thursday, March 6.
Dow Jones Industrial Average
The Dow Jones Industrial Average dropped in value by close to one per cent or more precisely, 0.99 per cent or 427.51 points.
This took the overall of index to 42,579.08 points.
S&P 500
When it comes to the S&P 500, things were even more acute, as the index dropped significantly.
While it traded in red for most of the day, the index suffered a major decline towards the end of the session, ending it with 1.78 per cent or 104.11 points. This brought the whole value of the index to 5,738.52.
Nasdaq Composite
The Nasdaq Composite was the biggest victim of the chaos initiated by Trump. The tech-heavy index dropped in value by a colossal 2.61 per cent or 483.48 points.
This pushed the overall of Nasdaq down to 18,069.26 points.
Trump Rolls Back Tariffs
What Has this resulted in? Well, yet another U-Turn from the US president and the American administration. The US president has once again pressed a reluctant pause on tariff machine. The government has paused the tariff for another month, until April.
In a post on Truth Social, while talking about a conversation Trump had with the Mexican president Claudia Sheinabum, Trump said, "After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement."
He further added, " This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!"
