Stock indexes start week in turmoil following government's tariff announcements

The country's main stock indexes experienced significant declines on Monday following announcements by the Federal administration to apply tariffs on Mexico, Canada and China. Volatility in financial markets has not yet stabilized, although the pause announced by Sheinbaum in the application of tariffs to Mexico has stopped the fall for some.

In the United States, the Dow Jones Industrial Average (-1.08%), the S&P 500 (- 1.35%) and the Nasdaq (-1.65%) recorded steep declines, reflecting investors' concern about a possible escalation in trade tensions and their implications for the global economy.

The worst declines were in automotive and component manufacturing-related stocks. General Motors lost 5.2 percent, Ford 3.5 percent and Tesla 4.6 percent, while auto parts makers such as Magna International and Lear suffered declines of 11 percent and 7.2 percent, respectively. The technology sector was also affected, with declines in Apple, Microsoft and Amazon.

Mexican peso and Canadian dollar suffer blows

The currencies of Canada and Mexico hit three-year lows against the U.S. dollar earlier Monday.

The Mexican peso and Canadian dollar depreciated significantly, reflecting market concerns about the economic impact of the new tariffs on their economies. In Mexico, the stock market has not yet reacted, as it is closed due to a holiday.

The announced tariff measures increased uncertainty in the financial markets, causing declines in the U.S. stock markets and strengthening the dollar, while the Mexican peso and the Canadian dollar have weakened considerably.

Volatility in European stock markets

European markets also traded lower on Monday as President Trump included the European Union and United Kingdom in his threats to impose tariffs.

The pan-European Stoxx 600 index ended the day with a 0.93% drop, recovering from lows of 1.6% recorded earlier in the day.