US stocks end lower as Trump downplays tariff talks

ISTANBUL

US stocks closed with losses Tuesday following President Donald Trump's chaotic remarks about trade talks, shattering expectations that tariffs would soon see improvement.

The S&P 500 slipped 0.77%, or 43.47 points, to close at 5,606.91.

The Nasdaq fell 0.87% to finish at 17,689.66 and the Dow was down 0.95%, to 40,829.

The decline was in reaction to Trump's remarks at his meeting with Canadian Prime Minister Mark Carney, which initiated talks between the two leaders since Carney recently took office.

Trump backtracked on his recent shift in tariff policy of making trade deals with other countries. "We don’t have to sign deals," he said.

“Everyone says, ‘When, when? When are you going to sign deals?’ We don’t have to sign deals,” said Trump. “They have to sign deals with us. They want a piece of our market. We don’t want a piece of their market.”

Treasury Secretary Scott Bessent said Tuesday that Washington has not commenced trade talks with China, one of the US’ 18 most significant trading partners.

While talks with Beijing are on hold, Bessent said negotiations with 17 major trading partners are happening. "I would be surprised if we don't have more than 80% or 90% of those wrapped up by the end of the year," he said, suggesting some deals might be announced "as early as this week."

Investors are also awaiting the Federal Reserve's interest rate decision, which will be announced Wednesday. The markets do not expect a change, which stands at 4.50%.

On the other hand, after Trump said Monday that he would announce tariffs on medicine within two weeks, shares of pharmaceutical manufacturers fell. Eli Lilly fell 5.74% and Pfizer was down 4.15%.

On the corporate side, shares of US electric car maker Tesla fell 1.75% after the company's new car sales in the UK and Germany fell to their lowest levels in more than two years in April.

On the macroeconomic data side, the US foreign trade deficit rose 14% month-on-month in March to $140.5 billion, a record, the Commerce Department said Tuesday.

The VIX Index, also known as the “fear index," rose 4.74% to 24.76.