BCN-11 US stocks join selloff on Trump Mexico tariffs

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US stocks join selloff on Trump Mexico tariffs

NEW YORK, May 31, 2019 (BSS/AFP) – Wall Street stocks opened sharply lower Friday, joining a global sell-off after President Donald Trump announced new tariffs on Mexico over illegal immigration.

US automakers, which operate factories in Mexico and rely on parts imported from the country, fell especially hard.

About 10 minutes into trading, the Dow Jones Industrial Average stood at 24,854.02, down 1.3 percent.

The broad-based S&P 500 also fell 1.3 percent to 2,752.43, while the tech-rich Nasdaq Composite tumbled 1.4 percent 7,461.45.

Trump announced the measure on Twitter, saying the United States would impose a five percent tariff on all Mexican imports on June 10.

According to the White House, the tariffs will rise to 10 percent on July 1, then increase by five percent increments each month until topping out at 25 percent on October 1.

The announcements comes during a weak period for US stocks in the wake of the protracted US-China trade dispute and a sharp drop in US Treasury bond yields that has unnerved investors. On Friday, the yield on the 10-year US Treasury fell further.

Stocks were broadly lower, with all 30 members of the Dow falling.

General Motors slumped 4.2 percent, Ford 3.4 percent and Fiat Chrysler five percent. A note from Deutsche Bank said the tariff measure “could cripple the industry and cause major uncertainty.”

BSS/AFP/MMA/1953HRS