President Donald Trump confirmed that tariffs on Canada and Mexico would go into effect at midnight.

The S&P 500 fell 1.8 percent, the Dow Jones Industrial Index lost 1.5 percent, and the Nasdaq was down 2.6 percent at market close.

Trump announced 25 percent tariffs on Canada and Mexico, stating there was no room left for negotiations.

Wall Street's fear gauge, known as the VIX, reached its highest point of the year following Trump's announcement.

The tariffs are intended to address trade imbalances and encourage manufacturing within the United States.