Dow drops nearly 650 as worries build about the economy following Trump’s latest tariff announcement

A sell-off hit Wall Street after Trump said tariffs he had announced earlier on Canada and Mexico would take effect within hours.

The S&P 500 dropped 1.8% Monday after Trump said there was no room left for negotiations that could lower tariffs set to begin Tuesday on Canadian and Mexican imports. That dashed Wall Street’s hopes that Trump would choose a less painful path for global trade, and it followed the latest warning signal on the U.S. economy’s strength.

The Dow Jones Industrial Average dropped 1.5%, and the Nasdaq composite slumped 2.6%. Treasury yields sank after a weaker-than-expected report on manufacturing.