Dow falls 500 points to session low as Trump confirms Mexico and Canada tariffs to start Tuesday: Live updates

Stocks retreated on Monday, extending February’s rout after President Donald Trump’s confirmation of forthcoming tariffs ratcheted up economic concerns.

The Dow Jones Industrial Average dropped 570 points, or 1.3%, hitting its low of the session amid Trump’s comments. The S&P 500 fell 1.5%. The Nasdaq Composite slid 2%, weighed down by Nvidia‘s slide of more than 7%. All three indexes traded higher earlier in the session, with the Dow at one point up nearly 200 points.

“Reciprocal tariffs start on April 2…but very importantly, tomorrow, tariffs, 25% on Canada and 25% on Mexico, and that will start,” said Trump alongside Commerce Secretary Howard Lutnick from the White House, dashing investors hopes of a last-minute deal to avert the full tariffs.

Those moves come after the three major indexes notched losses for February, which concluded last week. The Dow and S&P 500 each slipped more than 1% in February, while the tech-heavy Nasdaq Composite recorded its worst month since April 2024 with a pullback of 4%.

Soft economic data for the manufacturing and construction sectors released Monday offered the latest reasons for worry about the state of the U.S. economy. Those releases kick off a big week for economic data that will be capped by the February jobs report slated for Friday.

The rocky start to the new trading month comes as Trump’s plans to impose import duties on key U.S. trading partners this week loom over the stock market. These policy proposals have rattled investors and stirred up market volatility recently as traders worry that they will reignite inflation.

“Whether the stock market can survive this change remains to be seen,” Chris Rupkey, chief economist at FWDBONDS, said in a note. “One way or another, tariffs will be a shock for the economy.”