Trump Halts Tariffs on Select Imports: What This Means for the Nasdaq Entering Correction Territory – CNBC Daily Open

On March 6, 2025, President Donald Trump made headlines by extending a pause on tariffs for certain goods coming from Canada and Mexico. This decision relates to the United States-Mexico-Canada Agreement (USMCA), allowing about 38% of Canadian imports and 50% of Mexican imports to avoid a 25% tariff until April 2.

While this announcement initially seemed positive, investors reacted differently. Major U.S. stock indexes fell, with the Nasdaq Composite entering correction territory. This decline came as many investors worried about the ongoing tariff situation and its implications for the markets.

Trump, when asked about the stock market, responded that he was “not even looking” at it. His focus appears to be on long-term goals rather than daily market fluctuations. He attributed recent stock losses to globalist countries and companies, implying that they bear some responsibility for the situation.

Meanwhile, U.S. Treasury Secretary Scott Bessent emphasized that access to cheap goods is not the core of the “American dream.” He argued that tariffs serve multiple purposes: they generate revenue, protect American jobs, and act as a negotiation tool. His comments reflect a broader strategy aimed at reshaping trade dynamics.

February brought alarming news for job markets, with 172,017 layoffs reported, marking a 245% increase from January. This spike is the highest monthly number since July 2020 during the pandemic. A significant portion of these cuts is related to changes in federal employment policies supported by Trump.

On the international front, China’s export growth slowed to just 2.3% in early 2025, far below expectations. China’s Foreign Minister urged against the imposition of “arbitrary tariffs,” calling for peaceful coexistence between the two nations.

In a groundbreaking move, Trump signed an executive order creating a Strategic Bitcoin Reserve, funded by seized cryptocurrency from criminal cases. This new reserve aims to store digital assets under the Treasury Department’s management. However, Bitcoin prices fell sharply following the announcement, disappointing investors who anticipated a governmental investment in the currency.

The global financial landscape is on edge, reacting to Trump’s trade policies. In Europe, the European Central Bank cut interest rates, signaling a shift in monetary policy in response to changing economic conditions. This move, along with rising government bond yields, suggests a growing appetite for riskier investments.

Overall, the markets are experiencing a mix of uncertainty and volatility, with traders worldwide closely watching the effects of U.S. trade decisions.