Wall Street fell sharply on Monday as trade tensions flared again following the European Union’s decision to delay a transatlantic trade agreement after Donald Trump announced plans to impose new blanket 15% global tariffs.
The Nasdaq Composite and the S&P 500 each dropped 1.2% in early trading, while the Dow Jones Industrial Average fell 1.5%. Losses deepened into late morning in New York, with the Dow down 1.6%, the Nasdaq off 1.4%, and the S&P 500 lower by 1.1%.
The renewed volatility comes after the US Supreme Court struck down large portions of President Trump’s previous “reciprocal” tariffs on Friday, ruling that he had acted unlawfully in imposing them. In response, Trump announced over the weekend that he would introduce new 15% levies on imports under separate legal authorities.
Under those provisions, the tariffs can only remain in place for 150 days unless approved by Congress.
The European Parliament’s trade committee had been scheduled to vote on Tuesday on a deal aimed at reducing duties between the US and EU. However, that process has now been thrown into uncertainty. Bernd Lange, chair of the EU trade committee, warned that the temporary US tariffs could result in higher levies on some EU exports and said it remains unclear what would happen once the 150-day window expires.
As Brussels signalled its delay, Trump warned he would raise tariffs on countries that “play games” and said the Supreme Court ruling had left him able to act “in a much more powerful and obnoxious way.” He claimed he now had “far more powers and strength” following the court’s decision.
In the UK, Prime Minister Sir Keir Starmer’s official spokesman said that “nothing is off the table” in response to the latest developments, underscoring the growing uncertainty surrounding global trade policy.
