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The S&P 500 ( ^GSPC ) eliminated its post-election gains during Tuesday's volatile session as stocks responded to fresh tariffs on Canada, Mexico, and China .

The Dow Jones Industrial Average ( ^DJI ) fell about 1.5%, or over 650 points, as losses escalated into the close, while the benchmark S&P 500 dropped around 1.2%, hitting its lowest level in four months. The tech-heavy Nasdaq Composite ( ^IXIC ), which traded in the green at one point of the trading day, closed down about 0.4% but was able to avoid entering correction territory.

Stocks are retreating as markets assess the likely impact of Trump's broad tariffs on America’s top trading partners . The measures — fresh 25% tariffs on Canada and Mexico, and a doubling in China duties to 20% — were signed into effect at midnight ET on Tuesday.

Canada hit back with a sweeping package of immediate tariffs on US imports, while China retaliated with additional 15% duties on US farm products such as chicken and pork, to come on March 10. Many saw Beijing's response as less aggressive than feared, leaving room for negotiation with Trump .

Target (TGT) warned that tariffs will put pressure on first quarter profit as it delivered an earnings beat before the bell. The retail giant's stock was little changed in early trading. Meanwhile, its sector peer Best Buy (BBY) put out a muted annual sales forecast alongside its own quarterly beat. The additional sign of consumer caution helped send its shares lower.