Markets Plunge as Trump Tariffs Spark Economic Turmoil
Stock markets across North America and beyond are in freefall following the latest round of tariffs imposed by former U.S. President Donald Trump. The New York Stock Exchange is down nearly 2 percent and still falling, while the NASDAQ composite has dropped over 1 percent. In Canada, the Toronto Stock Exchange has declined by approximately 2 percent. Conservative leader, Pierre Poilievre said, “already the US President has wiped out trillions of dollars from the American stock market.”
Turbulence and investor uncertainty is the order of the day on markets throughout North America, with some opportunists buying stocks at a discount while many more are liquidating assets, accelerating the downturn. The volatility in North America is mirrored in European markets, which have seen losses ranging from 1 to nearly 4 percent.
Former Alberta Premier Jason Kenney criticized Trump’s economic strategy, calling the tariffs “nonsensical” and warning of long-term consequences. “They will scare long-term investors away from North America toward less stable trading partners like Russia,” Kenney said.
Auto Industry Faces Major Impact
Among the hardest-hit sectors is the automotive industry, where the cost of a Ford F-150 in the U.S. could rise by as much as $8,000 due to the tariffs. Kenney pointed to analysis indicating severe damage to the American auto sector, further compounding economic instability.
Meanwhile, Ontario Premier Doug Ford, newly emboldened with a stronger mandate, has vowed to retaliate. Ford issued sharp warnings to the U.S. government, criticizing Trump for choosing “chaos” over cooperation. As part of Ontario’s countermeasures, Ford has ordered the Liquor Control Board of Ontario (LCBO) to remove all American liquors from its shelves, a move that could cost U.S. producers over $1 billion in annual revenue.
Beyond liquor sales, Ontario is escalating its trade response by banning U.S. companies from government procurement contracts, including the cancellation of a major deal with Elon Musk’s Starlink—an agreement valued at more than $30 billion in U.S. revenue.
Ford is also targeting American energy dependency on Canada, threatening a 25 percent tax on Ontario’s electricity exports to the U.S. and suggesting the possibility of cutting off power entirely. Such a move could cause significant disruption across the U.S. eastern seaboard.
Broader Economic Fallout
The global response to Trump’s tariffs has been swift, with major stock indexes in Germany, Japan, and beyond recording losses between 1 and 5 percent.
Kenney remains perplexed by Trump’s contradictory energy policy. “On one hand, he’s adding a 10 percent tax on Alberta oil, claiming America is energy self-sufficient, and on the other, he wants to restart the Keystone Pipeline to bring more Alberta oil into the USA.”
Economic experts warn that the escalating trade war between Canada and the U.S. could further destabilize an already fragile global economy. With retaliatory measures already in motion, the coming weeks may bring further uncertainty to markets worldwide.
