(NewsNation) — Wall Street opened lower Friday as President Donald Trump’s trade deadline took effect, with the nation’s three major indices falling by roughly 1% in the first few minutes of trading.
The S&P 500 fell 1%, the Dow Jones Industrial Average sank 383 points (0.8%) and the Nasdaq composite was down 1.4%.
The markets’ tumble and weak job growth in the July jobs report followed a last-minute executive order establishing new tariffs on a wide swath of the United States’ trading partners.
The order imposed levies ranging from 10% to 41%, which are now set to take effect Aug. 7. Tariffs on the three largest U.S. trading partners — Mexico, Canada and China — are being handled differently.
The announcement threw world shares off-kilter, with early European trading seeing drops in Germany, Britain and France. Asian shares tumbled too — including in South Korea and Japan, two countries that had reached deals with the U.S.
Trump signs order imposing tariffs on 90+ trading partners
Trump signed an executive order on Thursday night, solidifying tariffs on more than 90 countries.
Set to go into effect a week from Friday, the worldwide levies came after a flurry of tariff-related activity in the last several days, as the White House announced agreements with various nations and blocs ahead of Trump’s self-imposed deadline.
The U.S. has cut deals with 12 of its top 18 trade partners, including Japan, South Korea, the United Kingdom and the European Union. All those deals included not only tariff negotiations, but also billions invested into the U.S.
Trump increases tariffs on Canada to 35%
The president still has an uphill battle with some of the countries that haven’t made a deal.
On Thursday, Trump and Mexican President Claudia Sheinbaum agreed to extend trade talks — and deadlines — for another 90 days, despite Trump’s insistence that his deadline would not waver. China also received an extension.
Trump also raised levies on Canada, from 25% to 35%, starting Friday, citing a lack of cooperation to curb illicit drugs.
The announcement from the White House late Thursday and said Canada had failed to “do more to arrest, seize, detain or otherwise intercept … traffickers, criminals at large, and illicit drugs.”
Trump previously said Canada’s decision to recognize the Palestinian state complicated efforts to broker a trade agreement.
NewsNation partner The Hill and the Associated Press contributed to this report.