Major U.S. stock indexes opened lower Monday after President Donald Trump's tariffs on Canada, Mexico and China triggered a trade war.

The US stock market has taken a few knocks so far in 2025. After riding high in 2024, US blue chip stock indices underperformed European indices in January, DeepSeek weighed heavily on US chip stocks last week, and now President Trump’s trade wars are also weighing on market sentiment.

Stock markets in Asia and Europe slumped Monday after Donald Trump slapped tariffs on Canada, Mexico and China, sparking fears over another bruising ‘America First’ trade war that could hit global economic growth.

GM, Ford and Stellantis stock plunged in initial trading Monday in light of a pending trade war. But Wall Street showed some resiliency later.

U.S. stock futures and the dollar fell on Tuesday, while Hong Kong shares slipped from two-month highs, as the U.S. and China went tit-for-tat on tariffs and raised the spectre of a broader, damaging trade conflict.

Wall Street was mixed in light trading early Tuesday as anxiety dissipated somewhat after President Donald Trump agreed to a 30-day pause on his tariff threats against Mexico and Canada. Trump's imposed tariffs on China remained in place.

U.S. stocks initially fell sharply on worries about President Trump's tariffs but pared their losses after Mexico said it had negotiated a one-month reprieve.