By Caroline Valetkevitch and Chibuike Oguh
NEW YORK (Reuters) -Major stock indexes were slightly lower on Friday as U.S. President Donald Trump’s announcement of tariffs on imports from Canada fanned worries about trade tensions, with the Canadian dollar down against the greenback.
Investors were also bracing for an announcement from Trump on tariffs on the European Union, a move that will likely trigger a tit-for-tat response from the bloc and inject fresh market uncertainty.
Trump said late on Thursday the U.S. would impose a 35% tariff on Canadian imports next month and planned to impose blanket tariffs of 15% or 20% on most other trading partners.
Aside from in currency markets, reactions to the tariff news have been milder than in April, when Trump launched his trade war. But that may change if more progress is not made on tariffs soon, said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.
“I don’t think the market can take the forever Trump tariffs on repeat. It’s been remarkable the market has been so resilient in the face of the tariffs and all of the changing rules, changing rates, and the pauses, delays, extensions and surprises,” he said.
“The market may have another tariff meltdown much like April if we don’t get more results.”
Still, he said, stocks could benefit from second-quarter earnings results.
“That could be a saving grace for the markets if they start paying attention to earnings again,” Dollarhide said.
JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period.
The Dow Jones Industrial Average fell 279.13 points, or 0.63%, to 44,371.51, the S&P 500 lost 20.71 points, or 0.33%, to 6,259.75 and the Nasdaq Composite fell 45.14 points, or 0.22%, to 20,585.53.
All three major U.S. stock indexes were down for the week.
Shares of Nvidia rose 0.5% to a record high, lifting its stock market value to $4.02 trillion.
Drone maker AeroVironment rose 11% after U.S. Defense Secretary Pete Hegseth ordered a surge in drone production and deployment.
MSCI’s gauge of stocks across the globe fell 3.85 points, or 0.42%, to 922.37. The pan-European STOXX 600 index ended down 1.01%.
“Today, you’re seeing a little bit of a pullback because of the tariffs being announced overnight. It’s been three consecutive days of after-market tariff announcements, and they seem to be coming relatively randomly, so you don’t know what you’re going to get,” said Wasif Latif, chief investment officer at Sarmaya Partners.
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