US stocks continue to decline as a result of tariffs.

Following the selloff in the previous day when President Donald Trump confirmed tariffs on Canada and Mexico, which sparked worries of a worldwide trade war, U.S. stocks continued to decline Tuesday.

Following U.S. President Donald Trump's announcement that a 25% duty on imports from Canada and Mexico will go into effect on March 4 and his signing of an order raising tariffs on Chinese goods from 10% to 20%, sentiment has been severely impacted. In response to Trump's tariffs, Canadian Prime Minister Justin Trudeau said his country would impose a 25% tax on about $20 billion worth of U.S. goods. Meanwhile, China's finance ministry announced that it would impose 15% tariffs on U.S. imports of chicken, wheat, corn, and cotton, and 10% on soybeans, sorghum, pork, beef, fruits and vegetables, dairy products, and aquatic products.

 Claudia Sheinbaum, the president of Mexico, stated on Tuesday that the additional taxes on her country's imports are unjustified and that she will declare retaliatory duties this weekend.

According to a report from Citi strategists, the possible risks related to these tariffs may not be completely reflected in the current S&P 500 profit projections.

 Although a strong fourth-quarter result set the stage for 2025, the strategists warn that the effects of tariff policies could not have been factored into the consensus projections.