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Trump Trade War Rhetoric Stays Hot After S&P 500, Dow Jones, Nasdaq Sell Off On Steel Tariffs | Stock News & Stock Market Analysis

The S&P 500 index, Dow Jones and Nasdaq composite fell sharply last week as President Trump announced he would impose a 25% steel tariff and 10% aluminum tariff on all imports, then said “trade wars are good, and easy to win.” Major losers include General Motors (GM) and Ford Motor (F), as well as Dow Jones stalwarts Boeing (BA), Caterpillar (CAT) and United Technologies (UTX), as well as many other manufacturing, construction and oil companies.

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 Futures for the S&P 500 index, Dow Jones industrial average and Nasdaq 100 were not yet active Sunday afternoon. But Trump trade war and tariff talk remained hot over the weekend. After European Union officials said they would respond with targeted retaliatory duties, Trump took to Twitter Saturday, threatening to tax imports of European cars, though many European cars sold in the U.S. are made in America. He also said that other countries “laugh at what fools our leaders have been” for our “very stupid” trade policies.

On Sunday, Peter Navarro, director of Trump’s National Trade Council and a fierce protectionist, said there would be “no country exclusions” from the sweeping metal tariffs. He did say that there may be case-by-case exemptions for business reasons.

Kevin Brady, head of the House Ways and Means committee, says the steel and aluminum tariffs should exclude Nafta partners Canada and Mexico as well as all other countries with “fairly traded” steel and aluminum.

The Trump steel tariffs, which the president will formally order this week or next, will raise costs for steel-using industries employing some 6.5 million U.S. workers to benefit steelmakers that have 140,000 workers. U.S. consumers also will pay more for cars, steel homes and everything else using steel and aluminum. The impact on jobs, investment and the economy could get far worse if Trump and America’s allies engage in an escalating trade war.

Many GOP lawmakers are also voicing their opposition to Trump’s protectionist move, a big break from Republican free-trade orthodoxy.


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Stocks will start the week with the S&P 500 index and Dow Jones back below their 50-day moving averages. The Nasdaq composite closed above that key support after rebounding from intraday lows Friday. IBD’s market direction has moved from “confirmed uptrend” to “uptrend under pressure.”

GM stock fell 8.5% last week, closing below its 200-day moving average for the first time in six months. Ford slid 2.8%, hitting its lowest level since late 2012 intraday Friday. Boeing lost 3.4%, testing its 50-day moving average. Caterpillar tumbled 9.9% and United Tech 2.4%, both falling below their 50-day lines.

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