Wall Street, global stocks down as investors brace for Trump's tariff plan

Stocks tumbled in early trading Monday as Wall Street braced for President Trump’s plan to unveil tariffs on “all countries” by midweek.

The Dow Jones Industrial Average was down nearly 400 points, or 1%, at opening. The S&P 500 and Nasdaq were firmly in negative territory, given uncertainty around Mr. Trump’s “liberation day” plan to impose levies on any nation that taxes U.S. goods.

Mr. Trump says the tariffs will hit many nations on Wednesday, not just a subset of countries where the U.S. has large trade imbalances.

“You’d start with all countries, so let’s see what happens. There are many countries in the world,” Mr. Trump told reporters Sunday on Air Force One.

Uncertainty around Mr. Trump’s plans is reflected in recent global market turmoil.

Europe’s Stoxx 600 index fell 1.6% on Monday and Asian markets in Japan, South Korea and Taiwan also were down.

Mr. Trump is barreling ahead with his plans, saying they are forcing companies to bring manufacturing back to the U.S. instead of making their goods overseas before bringing them to American markets.

Tariffs are a tax or duty paid by importers on the goods they bring in from foreign markets. Mr. Trump says tariffs are a great way to force companies to return to America or keep their operations in the U.S., employ American workers and create revenue to fund domestic programs.

But tariffs can also result in higher prices for consumers. Foreign countries don’t pay the tariffs directly to the U.S. Treasury. In many cases, U.S. companies will pay the levies, and they might pass on at least some of the cost to consumers through higher prices.

The president recently imposed a 25% tariff on automobiles made outside the U.S.

“The message is, ‘Congratulations, if you make your car in the United States, you’re going to make a lot of money.’ If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff,” Mr. Trump told NBC’s “Meet the Press” on Sunday.

Asked if he’s worried about automakers raising their prices, he said: “I couldn’t care less.”

“I hope they raise their prices, because if they do, people are gonna buy American-made cars,” he said. “We have plenty.”