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U.S. stock markets plummeted on Tuesday as a new global trade war began.

 took effect overnight. Trump imposed a 25% levy on most 

, with a separate 10% tariff on Canadian energy exports. Tariffs on Chinese goods were increased from 10% to 20%.

U.S. investors continued a sell-off that had started on Monday after Trump announced that there was "no room left" for negotiation with Mexico or Canada. The Dow fell 1.55%, or about 670 points on Tuesday after already falling nearly 1.5% on Monday. 

Meanwhile, the S&P lost 1.2% while the Nasdaq lost 0.35%.

Canada, Mexico and China are the country's three largest trading partners. The escalating trade war is likely to result in consumers paying higher prices for a wide range of products, including fruits and vegetables, flat-screen TVs and auto parts.

 Ford and GM also plunged on Tuesday. So did the shares of 

, as those large retailers warned that the new tariffs 

Business and Economic News

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Maria Aspan

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U.S. stock markets plummeted on Tuesday morning as a new global trade war began.

U.S. stock markets plunge as Trump's tariffs spark fears about a trade war

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