Stock market closes with a stumble ahead of looming tariffs

The U.S. stock market closed in the red on Monday afternoon, as Wall Street prepares for a string of tariffs on Canada and Mexico that are expected to go into effect on Tuesday.

President Donald Trump confirmed on Monday that 25% tariffs on imported goods from Canada and Mexico would go into effect as planned. He previously delayed the tariffs in order to allow the countries the chance to exert efforts to protect their borders with the United States. 

The announcement caused the Dow Jones Industrial Average to drop by 649 points, or 1.5%, and the Nasdaq composite dropped 2.6%, according to the Associated Press. The S&P 500 index dipped 2%.

The numbers have also hit Elon Musk and his company, Tesla, where shares dropped 2.8%.

Trump has imposed the tariffs over the countries' roles in the illegal flow of illicit drugs into the United States. Trump said last week that the drugs are being smuggled in at the Canadian and Mexican borders at “unacceptable levels” and that import taxes would force other countries to crack down on the trafficking.

The tariffs come amid fears over inflation and economic uncertainty.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.