The Dow and S&P 500 slid on Friday, with indexes losing ground in afternoon trading after the White House said President Trump will implement on Saturday tariffs of 25% on Canadian and Mexican imports and 10% on Chinese goods with immediate effect.
The Dow Jones Industrial Average dropped 329 points, or 0.7%, to 44,542.
The S&P 500 lost 0.5%, and the Nasdaq slipped 0.4%.
Investors have been bracing for further tariff news after Trump has repeatedly warned about using the measure.
Reuters earlier quoted sources familiar with the tariff deliberations as saying that Trump would announce tariffs on Canadian and Mexican imports on Saturday but delay collection of the duties until March 1.
Earlier in the session, economic data reinforced expectations that the Federal Reserve would keep interest rates unchanged for longer.
US prices increased as expected in December, while consumer spending surged.
“Clearly, it makes total sense that the Fed didn’t do anything this week, and it makes sense (Fed Chair) Jay Powell would say they’re not in a hurry to lower rates,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute in St. Louis, Missouri.
The Fed left rates unchanged in its policy announcement on Wednesday.
Traders kept their bets on the Fed waiting until June to resume rate cuts at 70% after the data was released, futures that settle to the central bank’s policy rate showed.
Apple was last down slightly. It was up earlier in the session after upbeat executive comments in its earnings on Thursday, in a sign the company expects to recover from a dip in iPhone sales as it rolls out AI features.
Chevron shares fell after the company reported fourth-quarter earnings below estimates.
