Worries about the war with Iran sent oil prices back to $100 per barrel and stocks sinking worldwide. The S&P 500 fell 1.5% Thursday and returned to big swings following a couple days of relative calm. The Dow Jones Industrial Average dropped 1.6%, and the Nasdaq composite sank 1.8%. The center of action was again the oil market, where the price of a barrel of Brent crude got as high as $101.59. Treasury yields climbed in the bond market on worries about higher inflation and fewer cuts to interest rates by the Federal Reserve.
Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact. Prime Minister Mark Carney said Canada will include the carve-out that the U.S. has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties. The move is designed to reset trade talks between the two countries. The USMCA is up for review in 2026, and Carney called the trade pact a unique advantage for Canada at a time when it is clear that the U.S. is charging for access to its market.
By ELAINE KURTENBACH, LORNE COOK and DAVID McHUGH AP Business Writer
Updated
The impact from U.S. President Donald Trump's blast of tariff hikes is reverberating across world markets as America's trading partners puzzle over whether there is room for negotiating better deals. China struck a note of confidence even as markets in Hong Kong and Shanghai tumbled. South Korea and Pakistan say they're planning to send officials to Washington to see what might be done to soften the impact. Malaysia's Trade Minister said his country will seek this week to forge a united response among Southeast Asian nations to the sweeping U.S. tariffs.
