The stock market experienced a significant downturn on July 11th, 2025, with the Dow Jones Industrial Average ending the week lower. This decline was primarily attributed to former President Donald Trump's renewed threat to impose a 35% tariff on Canadian goods. This announcement reignited anxieties surrounding trade protectionism and its potential to disrupt global supply chains and economic growth, leading investors to adopt a more cautious approach and sell off assets.

The uncertainty surrounding the potential for retaliatory tariffs from Canada further exacerbated the situation. Market analysts observed a widespread sense of apprehension, as the threat of a full-blown trade war between the two North American economic giants loomed large. The S&P 500 also mirrored the downward trend of the Dow, reflecting a broader market concern. While some analysts believe the market reaction was overblown and that the long-term impact of such tariffs might be limited, the short-term volatility highlighted the sensitivity of the global economy to trade policy pronouncements and the significant impact that political developments can have on investor confidence.