Wall Street in panic! Trump hits the duties, the stock exchanges react with declines

The Friday session on American stock exchanges brought decreases in the main indexes. Dow Jones lost 0.75 percent, ending the day at 44 544.66 points The S&P 500 index dropped by 0.50 percent up to 6,040.53 points, and the technological Nasdaq Composite decreased by 0.28 percent, closing the records of 19 627.44 points. The Russell 2000 index, gathering companies with average capitalization, dropped by 0.86 percent, while the VIX variation rate increased by 3.72 percent, reaching 16.43 points.

Trump introduces duties on Canada, Mexico and China

Donald Trump’s administration officially confirmed that from Saturday the 25 % duties will include imports from Canada and Mexico, and a 10 % tariff will be applied to goods from China. This decision caused uncertainty on the markets, because China was initially excluded from the list of countries covered by new trade sanctions.

According to the spokeswoman of the White House, Karoline Leavitt, customs duties on Canada and Mexico are the answer to the “unprecedented invasion of illegal fentanyl” and an increase in illegal immigration. In the case of China, the decision was justified by the influx of chemical precursors used for drug production.

Investors’ reaction to new trading tariffs

Trump’s announcements were widely heard to Wall Street. Investors reacted by a violent sale of shares, which affected the decreases in the main indexes. Experts indicate that the situation resembles events from the beginning of the week, when the markets reacted to information about the Chinese startup AI – Deepseek.

“This is very similar to what we saw on Monday in the case of Deepseek. The first reaction is the sale, but we have to wait for more details about the customs policy, “said Tom Hainlin, investment strategist US Bank Asset Management Group.

Declines in the technology and energy sector

Despite the general weakening of the market, Apple shares gained after publication of results for the first fiscal quarter. The company recorded lower sales of iPhones, but the increase in revenues from services improved the mood of investors. In turn, energy companies, such as Chevron and Exxon Mobil, recorded losses – 4 % respectively. and 3 percent – After weaker results for the fourth quarter.

Despite the declines, analysts indicate that long -term markets perspectives remain positive. The S&P 500 index increased in January by 2.6 percent, Nasdaq by 1.5 percent, and Dow Jones by 4.7 percent. According to Jay Hatfield of Infrastructure Capital Advisors, “we still have solid profits and it pays to keep long positions.”

On the oil market, WTI raw material increased by 0.88 percent. up to USD 73.37 per barrel, while Brent fell by 0.13 percent. up to 76.77 USD.

It is still not clear how Canada, Mexico and China will react to new duties. Markets will closely track further decisions of the Trump administration, which may even more affect the economic situation.