NEW YORK (AP) – U.S. stocks skidded Thursday after the Trump administration said it is imposing tariffs on steel and aluminum imported from Europe, Canada and Mexico. Canada and Mexico responded with tariffs of their own, and the European Union is expected to follow suit.
American steel makers mostly rose, while industrial companies fell as they face the prospect of paying more for metals they use to make aircraft and machinery. Companies that make household items took some of the worst losses, as products including orange juice and peanut butter might be hit with European tariffs.
Mexico is planning duties on U.S. exports including steel, meat products and sausages, while Canada said it will put reciprocal tariffs on steel and aluminum.
The S&P 500 index lost 18.74 points, or 0.7 percent, to 2,705.27. The Dow Jones industrial average fell 251.94 points, or 1 percent, to 24,415.84.
The Nasdaq composite dipped 20.34 points, or 0.3 percent, to 7,442.12 as technology companies like Alphabet and Facebook bucked the market’s decline. The Russell 2000 index, which is made up of smaller companies that tend to do more business in the U.S., slipped 14.38 points, or 0.9 percent, to 1,633.61. It closed at a record high Wednesday.
The U.S. tariffs go into effect Friday.
Steel jumped 1.7 percent to $36.87 and Century Aluminum gained 3.4 percent to $17.72. They made larger gains earlier in the day, but slipped after Canada announced reciprocal tariffs on steel and aluminum from the U.S. starting July 1.
Boeing dropped 1.7 percent to $352.16 and Caterpillar fell 2.3 percent to $151.91 while farm equipment maker Deere fell 3.6 percent to $149.51. The tariffs could increase the cost of the metals they use to make their products, and tariffs in Europe or other markets could hurt their sales.
Dairy maker Dean Foods fell 4.3 percent to $9.57 and Tyson Foods, which makes products including Jimmy Dean sausages, lost 3.9 percent to $67.47.
French officials said the EU will decide exact countermeasures in the coming weeks. European officials have threatened to retaliate against U.S. products including orange juice, peanut butter, clothing, motorcycles and bourbon. Harley-Davidson fell 2.2 percent to $41.08. Hormel, which makes Skippy peanut butter, declined 3.4 percent to $35.89.
GM said SoftBank is taking a 20 percent stake in the GM Cruise automated division. General Motors stock jumped 12.9 percent to $42.70.
U.S. crude oil slipped 1.7 percent to $67.04 a barrel in New York. Brent crude, used to price international oils, added 0.1 percent to $77.59 per barrel in London.
Wholesale gasoline fell 1.1 percent to $2.16 a gallon. Heating oil lost 1.8 percent to $2.19 a gallon. Natural gas rose 2.3 percent to $2.95 per 1,000 cubic feet.
Bond prices edged higher. The yield on the 10-year Treasury note fell to 2.83 percent from 2.85 percent and financial companies fell.
Gold lost 0.1 percent to $1,300.10 an ounce. Silver fell 0.5 percent to $16.46 an ounce. Copper stayed at $3.07 a pound.
The dollar fell to 108.64 yen from 108.85 yen. The euro rose to $1.1685 from $1.1654.
The DAX in Germany lost 1.4 percent and France’s CAC 40 fell 0.5 percent. The British FTSE 100 index dipped 0.1 percent.