US Stock Futures Plummet on Trump's Announced Tariffs
Wall Street is reeling from President Trump's imposition of tariffs on China, Mexico, and Canada, with major indexes poised for significant losses.
* Nasdaq futures (NQ=F): -2.2%
* S&P 500 futures (ES=F): -1.6%
* Dow futures (YM=F): -1.1% (approx. 500 points)
The tariffs, scheduled to take effect on Tuesday, include 25% duties on Canada and Mexico, and 10% on China. Energy imports from Canada will face a lower 10% duty.
On Sunday evening, the US dollar index (DX=F) climbed close to its highest levels in the past year. Crude oil (CL=F) also surged by around 2%.
Retaliatory measures have been a focus following Trump's anticipated tariff announcement. Canada, Mexico, and China have swiftly announced counter-tariffs on various goods. Prime Minister Justin Trudeau stated that Canada would impose 25% tariffs on approximately $107 billion worth of American products.
The trade war is creating "significant uncertainty" regarding the president's trade agenda for 2025. This uncertainty is contributing to the Fed's reluctance to raise interest rates over inflation concerns.
Consumers will face direct impacts on a wide range of products due to the tariffs. Automobiles and auto parts, energy, clothing, computers, whiskey, and avocados are among the items likely to see price increases.