Summary

U.S. stocks fell sharply Monday amid fears over the economic impact of Trump’s escalating trade war. The S&P 500 dropped 2%, the Nasdaq sank 3.5%, and European markets also declined.

Trump claimed of a “transition period” but refused discussing a recession. Investors worry tariffs will raise prices and slow growth.

China and Canada imposed retaliatory tariffs, with China targeting U.S. farm exports and Ontario threatening energy surcharges.

Commerce Secretary Howard Lutnick dismissed recession fears but admitted foreign goods “may get a little more expensive.”