The benchmarks dropped after Trump confirmed that the U.S.’ 25% duties on Canada and Mexico would go into effect. He added that there was “no room left” for the two nations to negotiate these new import tariffs. Trump also slapped an additional 10% tariff on Chinese goods. These levies took effect at midnight.

China retaliated with additional tariffs of up to 15% on some U.S. products. Canadian Prime Minister Justin Trudeau said his country would also put a 25% levy on U.S. goods.

Shares of GM and Ford were lower in premarket trading, following losses of 11% and 5% respectively this year on fears over tariffs. Chipotle, which sources about half of its avocados from Mexico, slipped 0.5% before the bell.

Monday’s sell-off dragged the S&P 500 into the red for 2025. Scott Ladner, chief investment officer at Horizon Investments, does not see these losses reversing back anytime soon.

“We don’t see the market going a whole lot of anywhere really fast,” he told CNBC. “We are at a place where sentiment is really in the toilet and that makes getting reversals out of this probably a little bit of a slog.”