Dow falls 250 points, S&P 500, Nasdaq retreat from record as Trump escalates tariff threats

US stocks retreated Friday after President Trump threatened Canada with a 35% tariff on its imports to the US and floated higher blanket levies on most trading partners.

The S&P 500  fell 0.3%, while the tech-heavy Nasdaq Composite  dipped 0.2%, both dipping from Thursday's record highs. The Dow Jones Industrial Average  declined 0.6%, dropping over 250 points to lead the way down.

Other parts of the market remained upbeat, however: AI chip maker Nvidia  notched a fresh record, while bitcoin  rose above $118,000 per token to also hover at new highs, continuing a furious crypto rally.

Markets once again mostly took Trump's tariff threats in stride, without any major negative reaction that typified his tariff salvos earlier this year.

Late Thursday, Trump on Truth Social posted a letter to Canadian Prime Minister Mark Carney, telling him that Canadian goods imported to the US would face a 35% tariff starting in August. The White House has since clarified that many of the carveouts currently in place for Canada tariffs would remain, likely exempting a slew of goods from those punitive duties.