Stocks drop as Trump ramps up new tariffs, AI fears linger

Investors continue to punish companies that could be losers in the AI revolution

Feb. 23, 2026 at 10:07pm

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U.S. stocks slumped on Monday after President Donald Trump ramped up his newest tariffs, while investors continued to punish companies that could be losers in the artificial-intelligence revolution. The S&P 500 fell 1% after Trump said he would place temporary 15% tariffs on other countries, up from the 10% rate he announced on Friday following a Supreme Court ruling that struck down his sweeping "reciprocal" taxes on imports.

Why it matters

Trump's move toward more aggressive tariffs shows the ongoing uncertainty over global trade, even after the Supreme Court ruled against his previous tariff policies. Investors are also concerned about the impact of AI on certain industries, leading to sharp sell-offs in stocks of companies seen as vulnerable to AI-powered competition.

The details

The Dow Jones Industrial Average dropped 821 points, or 1.7%, and the Nasdaq composite sank 1.1%. Beyond the 15% tariff that could last up to 150 days, Trump is moving forward on other avenues to place more permanent tariffs. This has trading partners uneasy, with South Korea's trade minister warning that uncertainty may worsen if the Trump administration continues imposing new tariffs. On Wall Street, big losses hit companies under suspicion of getting undercut by AI-powered rivals, with CrowdStrike falling 9.8% and AppLovin sinking 9.1%.

  • On Saturday, Trump said he would place temporary 15% tariffs on other countries, up from the 10% rate he announced on Friday.
  • The Supreme Court ruled against Trump's sweeping "reciprocal" tariffs on imports from around the world.

The players

Donald Trump

The President of the United States who has ramped up new tariffs.

CrowdStrike

A cybersecurity company whose stock fell 9.8% amid concerns about AI-powered competition.

AppLovin

A software company whose stock sank 9.1% due to worries that AI competition will steal customers and fundamentally reset their industry.

Kim Jung-kwan

The trade minister of South Korea who warned that uncertainty may worsen if the Trump administration continues imposing new tariffs.

Christopher Waller

A top official at the Federal Reserve who said it's a "coin flip" on whether the Fed will cut its main interest rate at its next meeting in March or stand pat again.

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What they’re saying

“Stocks got a boost Friday from the Supreme Court's tariff ruling, but it quickly became clear that the decision was simply going to open a new chapter in the trade saga, not end it.”

— Chris Larkin, Managing director, trading and investing, at E-Trade from Morgan Stanley

“Uncertainty may worsen if the Trump administration continues imposing new tariffs under alternative laws.”

— Kim Jung-kwan, South Korea's trade minister

“It's a "coin flip" on whether the Fed will cut its main interest rate at its next meeting in March or stand pat again.”

— Christopher Waller, Federal Reserve governor

The takeaway

This case highlights the ongoing uncertainty around global trade policies and the potential disruption caused by the rise of artificial intelligence, which is leading to sharp sell-offs in stocks of companies seen as vulnerable to AI-powered competition.