Dow plunges after Trump says tariffs are coming next week — with automakers and manufacturers getting hit the hardest
Business Insider • Graham Rapier • 57 minutes ago
Markets Insider
The Dow Jones industrial average plunged to session lows Thursday afternoon following an announcement by President Donald Trump that he would place new taxes on imported steel and aluminum. The Dow is now down 558 points, or 2.2%.
US Steel was one of the few stocks to stay in the green, rising more than 9% on the news that foreign steel would be subject to a 25% import tax. Aluminum will be taxed at a 10% rate.
"Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world,” Trump tweeted Thursday morning. “We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!"'
Stocks slide
Markets tanked as investors digested what the new taxes might mean for the economy — and the tariffs could have devastating consequences. Economists worry that increased trade protections on steel and aluminum could cause the downstream prices of goods that use those products to increase, leading to inflationary pressures in the US economy.
Among those already feeling the pain were beer producers, who responded to the Commerce Department's recommendations with a warning that an aluminum tariff could drive up the cost of beer cans and then what customers pay.
Automakers were also hit hard by the news,which hit on top of weak February sales data. The Detroit big-three — Ford, General Motors, and Fiat Chrysler— all reported declines in February sales from a year ago, and were all down more than 3% in trading.
Speaking on CNBC, Dan DiMicco, former CEO of steel producer Nucor, said a $1000-per-ton increase in the price of steel could raise the price of a car by $200 or more.
The S&P 500 was down 1.6% at the time of writing, and is headed for its first string of losses more than 1% since January 2016. The Nasdaq 100 were also down 2% at the time of writing.
Manufacturers were among the hardest hit. Boeing was down 4%, Caterpillar was down 3.5%, Dow DuPont was down 2.4%, and Apple was down 2.65%.
Oil continued its slide from earlier in the week, down just over 1% to $60.91 a barrel. 10-year US Treasury yields slid six basis points to 2.80%, their lowest since February 9.
NOW WATCH: What 'Dilly Dilly' means — and how Bud Light came up with its viral campaign
Business Insider • Graham Rapier • 57 minutes ago
- The Dow Jones industrial average sank as much as 546 points Thursday.
- Stocks slid after Trump announced that new tariffs on imported metals will be implemented next week.
- The S&P 500 and Dow are now both in the red for 2018.
The Dow Jones industrial average plunged to session lows Thursday afternoon following an announcement by President Donald Trump that he would place new taxes on imported steel and aluminum. The Dow is now down 558 points, or 2.2%.
US Steel was one of the few stocks to stay in the green, rising more than 9% on the news that foreign steel would be subject to a 25% import tax. Aluminum will be taxed at a 10% rate.
"Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world,” Trump tweeted Thursday morning. “We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!"'
Stocks slide
Markets tanked as investors digested what the new taxes might mean for the economy — and the tariffs could have devastating consequences. Economists worry that increased trade protections on steel and aluminum could cause the downstream prices of goods that use those products to increase, leading to inflationary pressures in the US economy.
Among those already feeling the pain were beer producers, who responded to the Commerce Department's recommendations with a warning that an aluminum tariff could drive up the cost of beer cans and then what customers pay.
Automakers were also hit hard by the news,which hit on top of weak February sales data. The Detroit big-three — Ford, General Motors, and Fiat Chrysler— all reported declines in February sales from a year ago, and were all down more than 3% in trading.
Speaking on CNBC, Dan DiMicco, former CEO of steel producer Nucor, said a $1000-per-ton increase in the price of steel could raise the price of a car by $200 or more.
The S&P 500 was down 1.6% at the time of writing, and is headed for its first string of losses more than 1% since January 2016. The Nasdaq 100 were also down 2% at the time of writing.
Manufacturers were among the hardest hit. Boeing was down 4%, Caterpillar was down 3.5%, Dow DuPont was down 2.4%, and Apple was down 2.65%.
Oil continued its slide from earlier in the week, down just over 1% to $60.91 a barrel. 10-year US Treasury yields slid six basis points to 2.80%, their lowest since February 9.
NOW WATCH: What 'Dilly Dilly' means — and how Bud Light came up with its viral campaign
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