Memory Stocks Slide as Trump Threatens 50% Tariffs on Canadian Autos, Steel in 2027: Stock Market Today
Key takeaways
- Trump’s 50% tariff threat on Canadian autos and steel has rattled memory‑chip and auto stocks, pushing the Nasdaq lower while boosting steel‑producer shares.
- Nasdaq 100 down 1.0% to 29,015.54
- S&P 500 down 0.1% to 7,664.26
- 10‑year Treasury yield eased to 4.69%
What happened
U.S. stocks split evenly as memory‑chip and optical‑component names fell after President Donald Trump announced a 50% tariff on Canadian cars, trucks, parts and steel effective January 1, 2027. The Nasdaq 100 slid 1.0% to 29,015.54, while the S&P 500 dipped 0.1% to 7,664.26. The announcement followed reports that Washington and Ottawa were close to cutting the current 50% levy on Canadian steel and aluminum, creating a sharp policy reversal that rattled supply‑chain investors.
Why it matters
The tariff threat directly impacts North American auto and steel producers, reshaping cost structures and trade flows. It also signals a broader escalation in U.S.–Canada trade tensions, potentially affecting other sectors tied to Canadian inputs. The sudden policy shift forces companies to reassess hedging,…
Short-term and longer-term
Short-term. Day traders should watch the Nasdaq 100 for volatility spikes around the tariff announcement and any subsequent trade‑deal updates.
Longer-term. Over the next few weeks, investors should assess how the tariff threat reshapes the cost structure of auto and steel companies, potentially altering their earnings forecasts.