U.S. stocks started February lower after President Donald Trump imposed tariffs on several key U.S. trading partners, raising fears that a full-blown trade war would disrupt global supply chains, reignite inflation and slow the economy.

The Dow Jones (DOWI:DJI) opened Monday’s trading session down more than 500 points (-1.20%) at the opening bell. The S&P 500 (SPI:SP500) fell 1.5%, and the Nasdaq Composite (NASDAQI:COMPX) fell 1.9%.

President Donald Trump on Saturday slapped a 25% tariff on goods from Mexico and Canada. He also put a 10% tariff on imports from China. Canadian energy imports received a smaller 10% tariff. Canada responded with retaliatory tariffs of its own, while Mexico said it would explore tariffs on U.S. imports. China, meanwhile, said it would file a lawsuit with the World Trade Organization.

Trump also signaled over the weekend that tariffs on the European Union would be imposed next.

“While the direct impact on U.S. growth from the announced tariffs is still quite modest, the risk is that these policy changes will amplify concerns about future trade policy risks and potential retaliation,” Goldman’s Dominic Wilson wrote in a note Sunday. “Stocks could also challenge market confidence that the Administration will avoid policies that push growth down or inflation up.”

U.S. automakers with large supply chains in North America led the decline, with General Motors Corp (NYSE:GM) down 7% and Ford Motor Co (NYSE:F) down 4% in premarket trading. Suppliers including Aptiv Corp (NYSE:APTV) lost 5%, and engine maker Cummins Corp (NYSE:CMI) lost 2%.

Nike (NYSE:NKE) fell 2%, while apparel maker (NASDAQ:LULU) Lululemon lost 3%.

One of the positive groups was steelmakers, with Nucor (NYSE:NUE) gaining 2% and Steel Dynamics (NASDAQ:STLD) up 1% in premarket trading.

“Markets may now need to take the rest of Trump’s tariff agenda literally rather than just seriously,” Tobin Marcus, head of U.S. policy and politics at Wolfe Research, said in a note. “If this new level of seriousness is suddenly priced in, Monday could be a tough day for markets.”

The emerging trade war comes as investors are grappling with the longest stretch yet for fourth-quarter earnings reports and a key economic reading on the jobs market this week. More than 120 companies in the S&P 500 are set to report results, including tech names Alphabet, Amazon and Palantir, as well as consumer giants including Walt Disney and Mondelez. January payrolls are due out on Friday, with economists surveyed by Dow Jones expecting 175,000 jobs to have been added last month.

Stocks are coming off a volatile few weeks to start 2025 as investors grapple with constant headlines of a new White House administration and cracks in the artificial intelligence trade that led the market higher. All three major U.S. indexes ended Friday’s trading session in the red, but traders still closed the first month of the year with gains. The S&P 500 added 2.7% and the tech-heavy Nasdaq Composite added 1.6% in January, while the Dow Jones Industrial Average outperformed in the period, jumping 4.7%.

General Motors (NYSE:GM)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025 Click aqui para mais gráficos General Motors.
General Motors (NYSE:GM)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025 Click aqui para mais gráficos General Motors.