The Dow Jones Industrial Average closed at a record high on Tuesday, rebounding swiftly less than a day after President-elect Donald Trump’s announcement of sweeping tariffs on Canada, China, and Mexico sparked fears of market turmoil.
The Dow rose 0.25% during the trading session, closing at 44,860.31. The S&P 500 also hit a record, climbing 0.55% to end at 6,021.63. The Nasdaq Composite led the gains, advancing 0.60% to finish at 19,174.30.
Trump’s tariff plan, unveiled late Monday, includes a 25% tariff on all goods imported from Canada and Mexico until those countries take action to curb illegal immigration and drug trafficking. Additionally, he proposed a 10% tariff on Chinese imports to address fentanyl smuggling concerns.
Economists have warned that such tariffs could lead to higher consumer prices, as importers typically pass increased costs onto shoppers. The Peterson Institute for International Economics estimated that the tariffs could cost the average U.S. household about $2,600 per year.
Despite these concerns, market resilience was driven by strong performance from key companies. Apple, which assembles many products in China but benefited from tariff exemptions during Trump’s previous term, edged up 0.12%. Nvidia, the AI chipmaker reliant on Taiwanese imports, saw its stock rise 0.66%.
While analysts remain cautious about the long-term impact of Trump’s tariff policies, the strong showing across major indexes on Tuesday underscores the market’s ability to weather geopolitical shocks in the short term.
