Trump said he was reinstating tariffs on steel and aluminium from the South American countries due to a devaluation of their currencies. The United States had previously exempted some countries, including Argentina and Brazil, which agreed to quotas on the metals.The Dow Jones Industrial Average ended down 268.37 points at 27,783.04.
Gregori Volokhine of Meeschaert Financial Services said Trump's move on Argentina and Brazil"rattled" the market because it directly linked tariffs to currency movements, a threat that Trump has previously floated with China but not acted on. China suspended US warship visits and sanctioned American NGOs after Trump signed into law a congressional measure supporting pro-democracy protesters in Hong Kong.
Analysts also cited a fourth straight monthly decline in manufacturing sector activity following a disappointing report by the Institute for Supply Management.