Stocks Tumbled at Open after Trump Announced Mexico Tariffs

U.S. stocks tumbled at open on Friday, after President Donald Trump threatened to impose tariffs on Mexican imports. The Dow Jones Industrial Average lately dropped 328.44 points , or 1.30%, to 24,841.44. The S&P 500 fell 37.94 points, or 1.36%, to 2,750.92. The Nasdaq Composite slipped 115.03 points, or 1.52%, to 7,452.68.

Oil futures headed lower Friday and for the week and month as U.S. tariffs on Mexico put a fresh spark in concerns for the global economy and demand for oil. West Texas Intermediate crude for July delivery traded down $1.22, or 2.2%, at $55.37 a barrel. July Brent fell $1.76, or 2.6%, at $65.11 a barrel.

Late Thursday, Trump announced in a tweet that the U.S. would impose a 5% tariff on all goods from Mexico until that country stops the flow of illegal immigrants into the country. He said the tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by Oct. 1.

U.S. consumer prices increased by the most in 15 months in April, which could support the Federal Reserve’s contention that recent low inflation readings were transitory and allow the central bank to keep interest rates unchanged for a while. The personal consumption expenditures (PCE) price index increased 0.3% last month, the biggest gain since January 2018, after rising 0.2% in March.