European and Asian stocks have been mostly lowered after a new round of tariffs imposed by U.S. President Donald Trump took effect.
China has fought back against Washington's move, raising tariffs by 20% across the board, while tariffs on U.S. farm exports can reach up to 15%.
Germany's Dax fell 1.8% to 22,733.26, while in Paris, the CAC 40 fell 1.1% to 8,108.71. The UK's FTSE 100 lost 0.4% to 8,837.92.
The S&P 500's future gains by 0.1%, while the Dow Jones Industrial Average's future remains unchanged.
In Asian trade, Tokyo's Nikkei 225 fell 1.2% to 37,331.18, while Hong Kong's Hang Seng lost 0.4% to 22,922.16. Shanghai's comprehensive index was 0.2% higher, to 3,324.21.
South Korea's Kospi gave up 0.2% to 2,528.92. Taiwan's Taiex fell by 0.7%, while Bangkok's racing stadium lost 1.1%.
On Monday, Trump said there was no “remaining room” in the negotiations, which could reduce tariffs on imports from Canada and Mexico on Tuesday, so the 500 index fell 1.8%. Trump has previously delayed tariffs to allow more time to negotiate.
The Dow Jones Index fell 1.5%, while Nasdaq Composite fell 2.6%.
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Francis Lun, CEO of Hong Kong's Geo Securities, said China's tariffs on U.S. beef, corn, soybeans and other agricultural products have expanded the potential impact of Trump's trade strategy.
“I don't think China will buy American farm products anymore. These orders will go to South America,” Lun said. “I think overall, this is a failure situation. No one gets anything.”
Investors had hoped that Trump would choose a less painful path for global trade. Monday's losses have cut returns on the S&P 500 since Election Day, below the peak of more than 6%. The rally is based primarily on hopes for Trump policies that will strengthen the U.S. economy and business.
After a fatter profit report from large U.S. companies, the market began to dive as weaker reports on the U.S. economy, including a couple becoming more pessimistic about inflation to our families because of the threat of tariffs.
The latest such report was released on Monday in the U.S. manufacturing industry. Overall activity is still growing, but not as much as economists predict. Perhaps even more frustrating, manufacturers are seeing a contraction in new orders. Meanwhile, the price has risen on who will pay Trump's tariffs.
The market's recent downturn has hit NVIDIA, as well as some other formerly high-leap areas, especially hard. They fell more on Monday, NVIDIA fell 8.8%, and Elon Musk's Tesla fell 2.8%.
In other transactions earlier Tuesday, U.S. benchmark crude oil lost 93 cents to $67.44 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude abandoned $1.10 to $70.52 a barrel.
The US dollar began to slide from 149.50 yen to 149.86 yen. The euro rose from $1.0488 to $1.0519.
Bitcoin fell to about $83,900, down 8.7%, according to Coindesk.
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