Catenaa, Tuesday, March 04, 2025– US stocks fell in the early hours on Tuesday, after President Donald Trump’s promised tariffs tool effect.
The Dow Jones Industrial Average dropped by over 765 points, or 1.77% after 2 hours into the market opening, while the S&P 500 fell 1.75%. The tech-heavy Nasdaq inched down 1.57
The policy taxes imports from Mexico, Canada and China — the three largest trading partners of the United States — meaning that it could raise prices for everything from gasoline to avocados to iPhones.
Shares of retail giant Target fell 6% in early trading on Tuesday, following an earnings release from the company that cited “tariff uncertainty” as a potential impediment for the business.
Walmart’s stock price dipped 2.29% on Tuesday, while Amazon shares fell 2.33%
Shares of Best Buy plummeted more than 14.8% on Tuesday morning. The sharp drop came hours after Best Buy CEO told analysts that price increases are “highly likely” as a result of the tariffs.
Higher costs for car production could also pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.
Shares of Ford tumbled 3.18% on Tuesday, while General Motors dropped by 4% Stellantis — the parent company of Jeep and Chrysler — saw shares plummet nearly 5.5%.
Tesla, the electric carmaker led by Elon Musk, saw its stock price drop by 7.16%.
