Stocks fell sharply as investors worried that President Trumps planned tariffs on steel and aluminum will lead to retaliation from other countries.

Trump told industry executives Thursday he would impose the tariffs next week. The head of the European Commission said the region would respond in kind.

Industrial companies like Boeing and Caterpillar that use steel and aluminum fell sharply, as did exporters like Apple whose overseas sales could be hurt by a trade war. Steel makers rose.

The Standard & Poors 500 index dropped 36 points, or 1.3%, to 2,677.

Trump to impose tariffs on imports of steel and aluminum

The Dow Jones industrial average fell 420 points, or 1.7%, to 24,608. The Nasdaq fell 92 points, or 1.3%, to 7,180.

Bond prices rose. The yield on the 10-year Treasury fell to 2.80%.