(NEW YORK) — U.S. stocks tumbled on Tuesday after the Trump administration’s long-promised tariffs took effect.

The Dow Jones Industrial Average dropped 670 points, or 1.5%; while the S&P 500 fell 1.2%. The tech-heavy Nasdaq ticked down 0.3%.

The policy taxes imports from Mexico, Canada and China — the three largest trading partners of the United States — meaning that it could raise prices for everything from gasoline to avocados to iPhones.

Shares of retail giant Target fell 3% on Tuesday, following an earnings release from the company that cited “tariff uncertainty” as a potential impediment for the business. Walmart’s stock price dipped about 2.5% on Tuesday, while Amazon shares inched down 0.6%.

Shares of Best Buy plummeted more than 13%. The sharp drop came after Best Buy CEO told analysts that price increases are “highly likely” as a result of the tariffs.

Higher costs for car production could also pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.

Shares of Ford tumbled nearly 3% on Tuesday, while General Motors dropped about 4.5%. Stellantis — the parent company of Jeep and Chrysler — saw shares decline more than 4%.

Tesla, the electric carmaker led by Elon Musk, saw its stock price drop about 4.5%.

The far-reaching losses extend a market slide that began on Monday afternoon when Trump affirmed plans to impose a fresh round of tariffs.

Trump stuck to a March 4 start date for 25% tariffs on imports from Mexico and Canada, as well as 10% tariff on Chinese goods — which, as of Tuesday, rises to 20%, per an amended executive order.

Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The duties also raise input costs for manufacturers that import raw materials.

In addition to Tesla and Amazon, the tariffs appeared to impact some of the other so-called “Magnificent Seven,” a group of large tech firms that helped drive stock market gains in recent years.

Meta, the parent company of Facebook and Instagram, suffered a 2% drop in its stock price. Apple, which makes some of its products in China, fell nearly 1%.

Shares of Microsoft defied the trend, however, remaining essentially unchanged on Tuesday.

Chipmaker Nvidia, which relies on semiconductors from Taiwan but also imports some materials from Mexico, saw shares increase about 1.5%. Alphabet’s stock price climbed about 2%.

This is a developing story. Please check back for updates.

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