U.S. stocks open lower after Trump announcement

NEW YORK, March 2 (Xinhua) -- U.S. stocks opened sharply lower on Friday after President Donald Trump announced steep tariffs on steel and aluminum imports.

Trump said on Thursday he would impose tariffs on imports of steel and aluminum, claiming that the move would protect the U.S. industry. Many experts argue that the planned tariffs would hurt U.S. producers and prompt legal challenges from trade partners.

The United States is set to impose 25 percent of tariff on steel imports products and 10 percent on aluminum as early as next week, Trump said after a meeting with business executives at the White House.

U.S. stocks tumbled for a third straight session after the announcement, with all three major indices dropping more than 1 percent.

The sell-off reflected Wall Street's concerns over inflationary risks and economic slowdown, two threats analysts predicted tariffs and other protectionist measures could bring.

Daniel Ikenson, a senior fellow at the Cato Institute, said on Thursday that trade restrictions could hurt U.S. producers' competitiveness against foreign rivals capable of offering lower prices in the U.S. market due to their lower production costs.

Business Roundtable, an association of chief executive officers of America's leading companies, said it strongly disagreed with Trump's announcement because it will hurt the U.S. economy and American companies, workers and consumers by raising prices which would lead to foreign retaliation against U.S. exporters.

Shortly after the opening bell, the Dow Jones Industrial Average fell 244.93 points, or 1.00 percent, to 24,364.05. The S&P 500 decreased 16.14 points, or 0.60 percent, to 2,661.53. The Nasdaq Composite Index was down 55.12 points, or 0.77 percent, to 7,125.44. Enditem