The return of Tariff Man set off another wave of selling on Wall Street, driving the Dow below 25,000 for the first time in four months.
The selloff capped the Dow’s sixth-straight losing week, the longest slump since June 2011.
The Dow and S&P 500 declined nearly 7% apiece in May, their first losing months since December. The Nasdaq tumbled 8% on the month, its worst May since 2010.
Trump’s vow to impose tariffs on Mexico surprised investors, driving shares of auto companies, beer makers and apparel companies sharply lower. General Motors (GM) declined 4%, Corona maker Constellation Brands (STZ) dropped 6% and Levi Strauss (LEVI) lost 7%.
US oil prices plunged 5.5% to a three-month low of $53.50 a barrel, reflecting fear about the economic impact of the tariffs on China and Mexico. Crude tumbled 16% in May, snapping a four-month winning streak.
Investors fled to the safety of US government debt, driving the 10-year Treasury yield to 2.13%, the lowest level in nearly two years.