Stocks drop after Trump ramps up his tariffs

Stocks slumped Monday after President Trump ramped up his newest tariffs, while investors continued to punish companies that could be losers in the artificial intelligence revolution.

- By Stan CHOE

FLIGHT cancellations set back airlines. Above, the New York Stock Exchange. StocksRecap

(SETH WENIG Associated Press)

The Standard & Poor's 500 index fell 7.76 points, or 1%, to 6,837.75 after Trump said Saturday that he would place temporary 15% tariffs on other countries. That’s up from the 10% rate he announced Friday after a Supreme Court ruling that struck down his sweeping “reciprocal” taxes on imports from around the world.

The Dow Jones industrial average dropped 821.91 points, or 1.7%, to 48,804.06, and the Nasdaq composite sank 258.80, or 1.1%, to 22,627.27.

Trump’s quick move toward more aggressive tariffs shows how much uncertainty still hangs over the global economy, even after the Supreme Court said the president lacked the legal authority to institute his sweeping “reciprocal” tariffs.

Beyond a 15% tariff that could last for up to 150 days, unless Congress extends it further, Trump is moving forward on other avenues to place more permanent tariffs on countries and industries. That has trading partners uneasy. South Korea’s trade minister, Kim Jung-kwan, said Monday that uncertainty may worsen if the Trump administration continues imposing new tariffs under alternative laws.