U.S. stocks got off to a shaky start Monday after President Trump threatened tariffs on all of America’s trading partners, stoking fears among investors of a shock to the world economy.
“You’d start with all countries,” Trump said on Air Force One late Sunday—though he said the tariffs would be more generous than trade partners had been to the U.S.
Trump has set a deadline of Wednesday to announce sweeping tariffs. He has already imposed a range of import levies and is poised to introduce auto tariffs this week. The president said over the weekend he “couldn’t care less” if prices for foreign cars went up.
In recent days, the president has pushed his team to be more aggressive, The Wall Street Journal reported, and to devise plans to hit a broader set of countries with tariffs. That runs counter to reports last week that the White House planned to zero in on a targeted set of nations.
Investors are also looking ahead to the end of the week, when a crucial jobs report will shine light on the state of the U.S. economy.
Monday caps a turbulent quarter for markets: exuberance about deregulation and tax cuts gave way to fear that Trump’s trade policy could drive the economy into recession, putting the S&P 500 on track for its biggest quarterly loss since the fall of 2022.
“The word we keep hearing the most these days is ‘volatility’ and ‘uncertainty,'” said Francis Gannon, co-chief investment officer at Royce Investment Partners. “The market is looking for clarity, and it’s not going to get any.”
Stocks declined in Europe and tumbled in Asia on Monday, while investors sought havens including U.S. government bonds and gold.
U.S. stock indexes were mixed. The Nasdaq Composite led losses, falling more than 1%. The Dow Jones Industrial Average edged slightly higher.
Yields on 10-year Treasury notes slipped, to hover around 4.2%.
Gold futures jumped, on track for another record closing high.
Bitcoin prices floated above $83,000.
European stocks retreated, with mining, banking and auto stocks among those leading the way down.
