2025.03.2720:01:24UTC+00US Stocks Fall as Tariffs Concerns Weigh

U.S. stocks ended the day lower on Thursday as the market reacted to President Trump's announcement of new tariffs on foreign-made automobiles. This move stoked concerns regarding a possible trade war and its wider ramifications on the global economy. The S&P 500 decreased by 0.3%, the Dow Jones dropped 155 points, and the Nasdaq 100 was down by over 0.5%. The President's decision to implement a 25% tariff on imported vehicles, set to begin in April, intensified worries about escalating trade tensions, particularly with major trading partners such as the EU and Canada. Shares of automakers suffered, with General Motors declining by 7.3% and Ford by 3.9%, while Tesla saw a gain of 0.4%, attributed to its domestic manufacturing operations. Investors also digested new economic indicators, with the fourth-quarter GDP growth revised upwards slightly to 2.4% from an earlier estimate of 2.3%, and core PCE inflation increasing somewhat less than forecasted. Initial jobless claims met expectations; however, the goods trade deficit was larger than predicted, further contributing to market uncertainty.