Dow Jones Plunges As Trump Trade War Vs. Mexico Threatens Economy, Trump 2020
ED CARSON
May 31, 2019 9:53 AM ET
The Dow Jones opened sharply lower Friday, along with the S&P 500 and Nasdaq composite, tumbling to new stock market correction lows after President Donald Trump announced tariffs on all Mexican goods, starting June 10.
General Motors (GM), Ford (F), Fiat Chrysler(FCAU) and other automakers were big early losers, but Caterpillar (CAT) and Apple stock also took part in the broad sell-off. This latest trade war threatens to roil the economy and deal a blow to Trump 2020 re-election hopes.
Separately, Okta (OKTA), Zscaler (ZS), and Uber Technologies (UBER) were active after the 2017, 2018 and 2019 initial public offerings reported earnings late Thursday. Okta stock jumped Friday while fellow cybersecurity play Zscaler stock sold off. Uber stock rose after its first earnings report since its May IPO.
Mexico Tariffs Up To 25%
Trump late Thursday declared a new trade war, this time with Mexico. He said Mexican tariffs will start at 5% on June 10 and increase until illegal immigration from the southern border has been stopped.
On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied, at which time the Tariffs will be removed. Details from the White House to follow.
The tariff on all Mexican goods will rise to 10% on July 1, 20% on Sept. 1 and 25% on Oct. 1, Trump said in a statement released by the White House.
The move comes hours after the Trump administration began a formal push for Congress to ratify the U.S.-Mexico-Canada Agreement, or USMCA, the revision to the North American Free Trade Agreement, or NAFTA. Just days ago, Trump lifted steel tariffs on Canada and Mexico to smooth passage for USMCA.
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