Crashing.........

US stock market reacts to Trump's tariffs

Brandon Drenon

In a Sunday television interview, Donald Trump was asked about the possibility of the US entering a recession. His response was the world's biggest economy was in a "period of transition".

The comments triggered a significant sell-off in the US stock market on Monday. The S&P 500, which tracks the biggest American companies, fell about 2.7% - its worst day this year.

The tech-heavy Nasdaq was hit even harder, falling roughly 4%. Elon Musk's Tesla was hit hard, dropping 15.4%.

On Tuesday morning, US markets opened modestly lower, but has not had the deep plunges it experienced yesterday. The S&P is down about 1%, and the Nasdaq is down 0.8%.

The latest plunge follows a downward stock market trend that began last week as Trump's initial tariffs against Canada and Mexico took hold.