The Dow, S&P 500 and Nasdaq retreat from record highs as President Trump rolled out a fresh tariff against Canada, following Brazil hit. Meanwhile, the Federal Reserve and Chairman Powell are under fire for spending on renovations.

Concern over US President Donald Trump’s intensifying trade war sent US stock futures lower, while Treasuries also fell. Trump’s weekend threat to impose 30% tariffs on the European Union and Mexico is testing market resilience,

Analysts said the muted market response was because many investors expected the levies to settle at lower levels after negotiations.