Trump tariffs spark trade war fears after fall in stocks
Major US stock indexes dropped more than 1pc on yesterday after President Donald Trump said the United States would impose import tariffs on steel and aluminium, raising concern about higher prices and a trade war.
Trump said the United States would impose tariffs of 25pc on steel imports and 10 percent on imported aluminium next week.
Shares of US steelmakers jumped, with US Steel last up 5.1pc, but industrial heavyweights like Boeing and Caterpillar fell as investors worried about higher raw material costs and trade barriers elsewhere. Boeing was down 3.5pc and Caterpillar was down 3.4pc.
The declines put the market on track for a third straight day of losses and the S&P 500 back into negative territory for the year.