Stocks stumble as the US hits allies with steel and aluminum tariffs

Wilbur Ross

Stocks slid Thursday afternoon after the Commerce Department said tariff exemptions to Mexico, Canada, and the European Union will expire at the end of the day. The Dow Jones industrial average dropped more than 200 points following the announcement. 

Here’s the scoreboard:

Dow Jones industrial average4,533.22 −134.56 (0.55%)

S&P 5002,712.19 −11.82 (0.43%)

  1. The Mexican peso and Canadian dollar slid against the dollarThe peso shed 1.3% just before noon, and the loonie was down nearly 1%.
  2. Shares of steel and aluminum manufacturers surged. US Steel Corporation shares rose more than 4% following the announcement. Shares of Nucor gained about 1.5%, and shares of Steel Dynamics were up about 0.75%. Shares of Century Aluminum climbed more than 4%, and Alcoa shares were up nearly 3%. 
  3. Politically-sensitive US companies could take a hit. The EU has threatened to impose retaliatory tariffs on products, including Harley-Davidson motorcycles of Wisconsin and Kentucky bourbon, that come from the home states of US Congressional leadership.
  4. General Motors scored a $2.25 billion investment for self-driving cars from SoftBank Vision Fund. Shares of GM shot up more than 10% to as high as$42.35 following the announcement. 

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Read the full article from it’s original source: http://uk.businessinsider.com/stocks-stumble-as-us-hits-allies-with-steel-aluminum-tariffs-2018-5

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