Imposition of Tariffs and Immediate Market Reactions

President Trump has imposed substantial tariffs of 25% on imports from Canada and Mexico and 10% on China, marking the onset of a trade war with immediate implications for market sentiment. As the tariffs were announced late in the trading week, stocks, particularly in the United States, experienced volatility, with the Dow, S&P 500, and Nasdaq all closing lower. Currency fluctuations also became evident, leading to a 0.5% rise in the dollar index, while the Canadian dollar and Mexican peso marginally depreciated. The sudden announcement and the expectation of retaliatory trade measures from affected countries have created uncertainty and unrest in financial markets, prompting analysts to anticipate further significant shifts in the coming days.