Hey there! Did you hear about what happened on Wall Street? 📉
On Monday, the U.S. stock market, known as Wall Street, fell sharply. This happened after President Donald Trump announced new taxes called “tariffs” on goods from Canada and Mexico.
So, what’s a tariff? It’s like an extra fee that countries charge on products they buy from other countries. Imagine if you had to pay extra allowance to get a toy from another friend!
President Trump said that starting Tuesday, there would be a 25% tariff on products from Canada and Mexico. He said, “They’re going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.”
Because of this news, the stock market went down. The S&P 500, which is a big group of 500 important companies, went down by 1.75%. The Nasdaq, which has lots of technology companies, dropped by 2.64%. Even the Dow Jones Industrial Average, another important group of companies, fell by 1.47%.
Also, the Canadian dollar and the Mexican peso, which are the types of money used in Canada and Mexico, both lost value against the U.S. dollar.
Why does this matter? Well, when stock markets drop, it can affect people’s savings and the economy. It’s like if your piggy bank suddenly had less money in it. That’s why many people are paying attention to what’s happening!
Reference(s):
cgtn.com
