A sell-off hit Wall Street after President Donald Trump said tariffs he had announced earlier on Canada and Mexico would take effect within hours. The S&P 500 dropped 1.8% Monday after Trump said there was no room left for negotiations that could lower tariffs set to begin Tuesday on Canadian and Mexican imports.

The drop in US shares was in sharp contrast to Europe, where equities staged one of their strongest advances of 2025. The moves extended an international rotation trade that has held sway most of the year.

The Dow, S&P 500 and Nasdaq Composite fell sharply hours before President Trump’s tariffs on Canada and Mexico go into effect with no chance of a last-minute deal.