Beijing hits back with retaliatory tariffs and other measures after U.S. imposes additional 10% duties on China

Stocks tumbled on Wall Street Tuesday as a trade war between the U.S. and its key trading partners escalated and threatened to wipe out all the gains for the S&P 500 since Election Day. The Trump administration imposed tariffs on imports from Canada and Mexico starting Tuesday and doubled tariffs against imports from China.

The Wall Street Journal argued that "someone should sue" the Trump administration over the massive tariffs it has imposed on Mexico and Canada.

Economic forecasts have been weakening. While some see slower growth, several commentators see the chance of an outright recession rising this year.

Stocks were rallying Wednesday after Commerce Secretary Howard Lutnick signaled the U.S. could be prepared to scale back its tariffs on Canada and Mexico, but the best-known measure of market uncertainty remained elevated.

All three major U.S. markets sank before regaining lost ground on fears a trade war will hobble the world’s largest economy and boost inflation.

But amid retaliatory tariffs and warnings from businesses about the squeeze of forceful levies, it seems clear that Wall Street is delivering its own resounding judgment on Trump’s economic actions.