Jerry Jackson Global stock markets fell after Donald Trump approved new tariffs on Canada, China, and Mexico, raising trade war fears. However, markets recovered some losses when Trump agreed to delay tariffs on Mexican goods for a month.
Investors panicked as Trump insisted on pushing forward with the tariffs. The S&P 500 dropped nearly 2% before bouncing back after the U.S. and Mexico announced a temporary pause. By mid-afternoon, the S&P 500 was down 0.4%, while the Nasdaq fell 0.8%. The Dow Jones climbed slightly into positive territory.
London’s FTSE 100 fell 1.4% from last Friday’s record high but later recovered some losses. Germany’s DAX, France’s CAC 40, and Spain’s IBEX each dropped over 1%, while Italy’s FTSE MIB declined 0.7%.
Asian markets reacted negatively to the tariff news. Japan’s Nikkei plunged 2.8%, and Hong Kong’s Hang Seng index slipped 1%. Chinese markets remained closed due to the Lunar New Year holiday.
Tech giant Nvidia led losses on the Dow, falling over 5% after Chinese AI firm DeepSeek emerged as a strong competitor. European carmakers, including Volkswagen, BMW, and Porsche, saw their shares drop between 5% and 6%.
Several UK companies also took a hit. Scottish Mortgage Investment Trust, JD Sports Fashion, and miner Antofagasta all lost over 4%. The British pound weakened against the U.S. dollar but gained slightly against the euro. The Canadian dollar hit a 20-year low before recovering.
Ontario’s Premier Doug Ford retaliated by banning U.S. companies from provincial contracts, stating that American businesses would lose billions. Meanwhile, Bitcoin fell 6.2%, hitting a three-week low before slightly recovering.
Analysts remain cautious. JPMorgan Chase warned that Trump’s policies could hurt businesses. Experts fear that tariffs might trigger inflation and slow global growth, including in the U.S.