Wall Street Plunges Amid Trump Tariff Threats

The U.S. stock market experienced a significant downturn, with the Dow Jones dropping 956 points and the S&P 500 declining 3% on Monday, attributed to President Trump's tariff threats against Canada and uncertainty surrounding his trade policies. Trump's proposed tariffs include a 25% levy on Canadian electricity and a 50% tariff on steel and aluminum imports, in retaliation to Canada's export surcharge on U.S. electricity. Investors are concerned about the potential for a recession, as Trump has not ruled out this possibility, and the market's volatility has been exacerbated by the administration's inconsistent trade messages. Wall Street's fear gauge, the VIX, surged, reflecting investor anxiety over the potential economic impacts. Trump's comments about tariffs being beneficial for the country have not eased market fears, as private sector investments and consumer spending show signs of stalling. The stock market's recent performance, with fluctuations and significant declines, indicates a broader uncertainty about the economic future under current policies.