US stocks closed lower after President Donald Trump escalated his tariff attack on Canada, adding to uncertainty over US trade policy.
Trump announced that the US would impose a 35% tariff on imports from Canada starting August 1. He also plans to impose a blanket tariff of 15% to 20% on other trading partners.
The S&P 500 index fell 0.33% to 6,259.75 points, the Dow Jones Industrial Average fell 0.63% to 44,371.51 points, while the tech-focused Nasdaq fell 0.22% to 20,585.53 points.
This comes after the S&P 500 fell from its highest level, following Trump's 50% tariff on Brazil. Over the weekend, Trump threatened 30% tariffs on the European Union (EU) and Mexico, which will also start on August 1.
In other news, Nvidia shares rose 0.5% to a market value of $4.02 trillion. Levi Strauss & Co shares jumped 11% after the company raised its annual revenue forecast and beat quarterly profit expectations.
Investors are now turning their attention to the second-quarter reporting season and assessing the impact of Trump's tariffs on major companies such as JPMorgan, Netflix and Johnson & Johnson.
Volume on U.S. exchanges was $15.4 billion, compared with an average of $18.3 billion over the two full trading days.
