Trump's tariff talks with Canadian Prime Minister Trudeau ended without results, the U.S. stocks fell across the board on May 6,

On May 6, U.S. President Trump met with Canadian Prime Minister Justin Trudeau at the White House, but they failed to reach an agreement on tariff issues, heightening market fears of a trade war. On that day, all four major U.S. stock indices declined, with the S&P 500 index dropping 0.77%, breaking a nine-day winning streak. In March, the U.S. trade deficit widened to $140.5 billion, an all-time high, highlighting the economic pressure from increased imports and trade policy uncertainty.

Trump and Carney Meeting Ends Without Progress, Tariff Stance Unchanged

On May 6, U.S. President Trump held talks with newly appointed Canadian Prime Minister Mark Carney at the White House. Despite maintaining polite interactions in public, Trump made it clear that no conditions proposed by Canada could persuade him to lift the imposed tariffs. He emphasized, "We don't necessarily have to sign an agreement," adding that the U.S. will decide within the next two weeks whether to accept certain trade proposals.

Carney, on the other hand, stated after the meeting that Canada will not become the "51st state" of the U.S. and reiterated that Canada is not for sale but is willing to seek bilateral win-win cooperation. At a press conference at the Canadian Embassy, he noted that this visit is "the starting point for resetting U.S.-Canada relations," but also admitted that there are still many differences to be resolved.

Tariff Policy Uncertainty Weighs on Market Sentiment

During the talks, Trump did not release any signals of tariff concessions; instead, he emphasized imposing a new round of tariffs on imported goods such as pharmaceuticals and hinted that future negotiations would not be bilateral but rather involve presenting a "one-time concession list" to trade partners. This shift in stance has raised concerns about an escalation in the trade war.

Investors reacted swiftly. On May 6, all four major U.S. stock indices fell, with the Dow Jones Industrial Average dropping 389.83 points (-0.95%) to close at 40,829.00 points; the Nasdaq fell 154.88 points (-0.87%) to 17,689.66 points; the S&P 500 fell 43.47 points (-0.77%) to 5,606.91 points; and the Philadelphia Semiconductor Index fell 1.03%.

Among the 11 sectors of the S&P 500, only the consumer staples sector saw a slight increase (+0.02%), while the healthcare sector plummeted 2.8% due to the pharmaceutical tariff news, becoming the worst-performing sector. Eli Lilly and Pfizer fell 5.64% and 4.15%, respectively, while vaccine stocks Moderna and Vertex Pharmaceuticals plunged 12.25% and 10.03%, respectively.

S&P 500 Ends Nine-Day Winning Streak, Market Risk Appetite Cools

Prior to this, the S&P 500 had risen for nine consecutive trading days, marking the longest winning streak in 20 years. However, Trump's tough stance on tariff policy and the upcoming Federal Reserve monetary policy meeting have made investors more cautious, with risk appetite noticeably cooling.

According to a report by Investopedia, the market initially expected Trump to release signals of tariff relief after talks with Canada, but the actual outcome disappointed investors. Meanwhile, the Federal Reserve began a two-day policy meeting on May 7, with the market widely expecting rates to remain unchanged and closely watching Chairman Powell's comments on the economic outlook.

U.S. March Trade Deficit Hits Record High

Amid market turmoil, the latest data released by the U.S. Department of Commerce showed that the trade deficit widened to $140.5 billion in March, setting a new monthly record since records began in 1992. This figure exceeded the market's expectation of $137.6 billion and was a significant increase from the revised $123.2 billion in February.

Total imports rose 4.4% in March to $419 billion, a record high. The increase in imports was mainly driven by consumer goods such as pharmaceuticals, passenger cars, and computer accessories, indicating that businesses and consumers were rushing to purchase before Trump announced a new round of tariffs. Exports rose only slightly by 0.2% to $278.5 billion, also a record high, but the increase was far less than that of imports.

According to Trading Economics data, the U.S. trade deficit with the EU widened to $48.3 billion, with the deficit with Ireland expanding from $1.4 billion to $2.93 billion. The deficit with China slightly narrowed to $24.8 billion.

Market Awaits Fed Decision, Funds Shift to Safe-Haven Assets

Against the backdrop of rising trade policy uncertainty, market funds are flowing into safe-haven assets. The yield on the 10-year U.S. Treasury fell from 4.34% in the previous trading day to 4.30%, indicating increased demand for bonds. The dollar index fell 0.6% to 99.25, reflecting concerns about the U.S. economic outlook.

Meanwhile, energy stocks rose against the trend due to rising oil prices, and defensive sectors such as utilities and consumer staples performed relatively well. In contrast, technology and healthcare stocks were under significant pressure, becoming the main drag on the broader market.

Trump's tariff talks with Canadian Prime Minister Trudeau ended without results, the U.S. stocks fell across the board on May 6,

Key Updates

Trump's tariff policy has severely impacted the confidence of Japanese businesses, yet the tourism industry has achieved its second-highest record ever, despite the challenging conditions.

Federal Reserve Chair Powell warns that high tariffs could lead to inflation in the U.S. rising to 4%, the unemployment rate reaching 5%, and a slowdown in economic growth.

Trump's tariff policies have increased Ford car prices, and CEO Farley says this will affect billions of dollars.

U.S. tariff policy severely impacts businesses: Skechers acquired by 3G Capital, while the Federal Reserve keeps interest rates unchanged as a measure against inflation.

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