US stocks end lower amid Trump tariffs, EU trade deal suspension

By Mucahithan Avcioglu

ISTANBUL (AA) - US stocks ended with losses Monday after President Donald Trump raised his global tariffs to 15% and the European Parliament suspended its work on approving a EU-US trade deal.

The Dow Jones Industrial Average fell 1.66%, or 821.91 points, to end at 48,804.06.

The Nasdaq sank 1.13%, or 258.79 points, to 22,627.27, and the S&P 500 lost 1.04%, or 71.76 points, to 6,837.75.

The Volatility Index (VIX), also known as the "fear index,” climbed 10.06% to 21.01 points.

Markets fell after Trump announced over the weekend that he would increase a planned blanket global tariff from 10% to 15%.

In a post on his Truth Social platform, he said the revised tariffs are “effective immediately” and warned that further duties would follow.

On Monday, Trump threatened to impose steeper tariffs on any countries that "play games" with a recent Supreme Court ruling which said that his previous "emergency" and "reciprocal" tariffs were illegal under the International Emergency Economic Powers Act and that the power to tax belongs to Congress.

Also, the European Parliament on Monday suspended its work on approving a EU-US trade deal following the renewed tariff threats.

Bernd Lange, chair of the EP’s committee on international trade, said on the US social media company X’s platform that work on the agreement would be suspended until further notice.

Technology shares came under renewed pressure as concerns over AI-driven disruption weighed on sentiment. Microsoft fell 3%, while CrowdStrike slid nearly 10%.

Amazon's stock continued its slide on Monday, falling over 2.5%, even after the firm announced a $12 billion investment in data centers in Louisiana.

American Express declined 7%, dragging on the Dow, and Mastercard dropped almost 6%.

Meanwhile, consumer staples stocks such as Walmart and Procter & Gamble gained more than 2% each.

On the data side, new orders for US manufactured goods fell by 0.7% on a monthly basis in December, above expectations.

The yield on the 10-year US Treasury note rose slightly from 4.15% to 4.17%, while the US dollar index gained 0.3% against a basket of major currencies.