U.S.-Canada Tariff Tensions Shake Stock Markets

Stock markets dipped as President Trump imposed a 50% tariff on Canadian steel and aluminum. The Dow fell by 0.85%, while S&P 500 dropped by 0.27%. Economic tensions escalated between the two nations, causing volatility in global markets and cautious investor sentiment.

The U.S. stock markets saw another day of declines on Tuesday following President Donald Trump's announcement of new tariffs on imports from Canada. At the time of writing, the Dow Jones Industrial Average decreased by 356.78 points, a 0.85% drop, landing at 41,554.93. Meanwhile, the S&P 500 index fell by 15.27 points, or 0.27%, to settle at 5,599.29.

The downward trend was triggered by Trump's decision to impose a 50% tariff on Canadian steel and aluminum. In a social media post, Trump explained that Ontario's 25% tariff on U.S. electricity imports prompted this response. Financial expert Ajay Bagga noted that such disruptions in global supply chains could lead to economic downturns in various regions.

Trump's announcement, made via Truth Social, emphasized that the tariff would start March 12. He also criticized Canada's tariffs on U.S. dairy products, describing them as 'outrageous.' Monday had already seen major losses in U.S. stock markets, including a 4% plunge in the Nasdaq and over a 2.7% drop in the S&P 500, which fueled a worldwide sell-off.

These developments highlighted growing economic strains between the U.S. and Canada, with investors monitoring the situation closely. On Tuesday, Indian markets ended flat after a turbulent session, though the Nifty 50 index managed to climb by 0.17% to 22,497.90. Key gainers included Trent and Sun Pharma, while IndusInd Bank and Infosys were among the losers.

Sectors like metals, realty, telecom, and oil advanced by 0.5-3%, whereas auto, IT, and banking sectors declined by 0.5% each. On the BSE, the Midcap index increased by 0.6%, although the Smallcap index fell by 0.7%. (ANI)

(With inputs from agencies.)