Dow plunges after Trump says tariffs are coming next week

The Dow Jones industrial average plunged to session lows Thursday afternoon following an announcement by President Donald Trump that he would place new taxes on imported steel and aluminium. The Dow initially fell by more than 500 points and closed 1.68% lower, a fall of 420 points.

US Steel rose more than 9% on the news that foreign steel would be subject to a 25% import tax. Aluminium will be taxed at a 10% rate.

“Our Steel and Aluminium industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world,”Trump tweeted Thursday morning. “We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!”

The S&P500 closed 1.38% lower while the Nasdaq fell by 1.27%.

Among the Dow’s biggest losers were United Technologies, down 3.30%; Boeing, down 3.46%; Pfizer, down 1.87%; and Walmart, which fell more than 1%.

US WTI oil also continued its slide from earlier in the week, down just over 1% to $US60.91.

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