U.S. stocks sunk Thursday just moments after President Trump announced new, steep tariffs on steel and aluminum to be imposed next week.
The announcement sent the Dow Jones industrial average down as much as 580 points, than 2 percent, shortly after 2 p.m. The Nasdaq and the Standard & Poore’s 500 index also fell roughly 1.8 percent each.
Trump said Thursday he would announce a 25 percent tariff on imported steel and a 10 percent tariff on aluminum from all countries that send metals to the U.S. The move is expected to lead to retaliation by trade partners.
Reports surfaced last week that Trump was looking at such tariffs.
The tariffs are part of an effort by the Trump administration to bolster the U.S. steel and aluminum industries, which Trump pledged to revive on the campaign trail.
“We’ll be signing it next week. And you’ll have protection for a long time in a while,” Trump said, a promise he made while meeting with 15 steel and aluminum industry executives.
“You’ll have to regrow your industries, that’s all I’m asking.”
The Commerce Department previously recommended tariffs of 24 percent on steel and 10 percent on aluminum among other potential policy changes.
Trump’s decision came against the pleas of Republican lawmakers, who argued that American consumers will bear the brunt of the cost. Senate Democrats up for reelection this year in states Trump won in 2016 have praised the president’s plan as a way to protect American workers.
Trump has until the end of April to finalize his decision.
Updated at 2:53 p.m.