Stock Market Update: Dow, S&P 500, and Nasdaq Dip as Trump Proposes 35% Tariff on Canada and Increased Duties

US stocks dipped on Friday following President Trump’s announcement of a 35% tariff on Canadian imports. The S&P 500 fell about 0.4%, while the Nasdaq dropped 0.2%. The Dow Jones Industrial Average dropped around 400 points, or 0.8%.

In another financial sphere, Bitcoin surged past $118,000 before retracing some of its gains.

Late Thursday, Trump addressed Canadian Prime Minister Mark Carney on social media, warning that Canadian imports would face the hefty new tariff from August. He also hinted at introducing blanket tariffs of 15% to 20% on other trading partners, raising concerns among investors.

Earlier in the week, the market seemed unfazed by these threats, with many believing that negotiations with the EU and India would provide some buffer. However, Trump’s announcement included a shocking 50% tariff on Brazilian imports, stirring political tensions.

Jamie Dimon, CEO of JPMorgan, expressed caution, noting that markets might be too complacent about these threats. He emphasized the importance of taking tariff concerns seriously as inflation continues to rise.

On the corporate front, Levi’s shares increased by 9% after the company raised its revenue and profit forecasts, betting on strong denim demand, especially in Europe, despite potential tariff impacts.

Interestingly, energy was the only market sector to gain, as oil prices rose amidst concerns of tighter supply. Meanwhile, health care, materials, and financial sectors all saw declines.

As the market reacts to these tariff threats, we see a varied landscape. While some sectors are suffering, others like energy are benefiting from the changing market conditions. Current trends show a need for investors to stay informed and agile in this shifting economic climate.

For more on these developments, refer to trusted sources like NBC News.

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