The Vanguard S&P 500 ETF (VOO) closed at $549.70 on February 3, 2025, down 0.66% as the S&P 500 Index fell 0.76% to 5,994.57 amid heightened market volatility due to President Trump's tariff announcements. The imposition of 25% tariffs on imports from Mexico and Canada, along with 10% on Chinese goods, has sparked concerns over potential economic repercussions, including a projected 1.2% reduction in GDP and a 0.7% increase in inflation. These tariffs, set to take effect on February 4, have led to fears of a broader trade war, with retaliatory measures from affected countries adding to market uncertainty. The tariffs are expected to weigh on corporate earnings, with Goldman Sachs estimating a potential 5% drop in the S&P 500 due to the increased costs and potential inflationary pressures. Investors are also concerned about the impact on interest rates, as inflationary pressures could lead to a pause in Federal Reserve rate cuts. The market's reaction reflects a cautious stance, with equities facing downside risks and bonds gaining appeal as a safe haven.