US Stock Futures Plummet as Trump's Tariffs Imminent
US stock futures signal significant losses for major indices amid uncertainties over President Donald Trump's tariffs on China, Mexico, and Canada.
Futures Tumble
* Nasdaq futures (NQ=F) lead the decline with a 2.7% drop.
* S&P 500 futures (ES=F) slide 2%.
* Dow Jones futures (YM=F) stumble 1.4%, approximately 600 points.
Tariff Details
Effective Tuesday, tariffs will impose 25% duties on Canada and Mexico, with China facing a 10% levy. Canada's energy imports will incur a 10% tariff.
Retaliatory Measures
Canada, Mexico, and China have swiftly announced countermeasures on various goods. Canada plans to impose 25% retaliatory tariffs on $107 billion worth of American products.
Economic Impact
The trade war exacerbates "considerable uncertainty about President Trump's trade agenda for 2025." This uncertainty contributes to the Federal Reserve's reluctance to raise rates due to inflation concerns.
Consumer Prices
Tariffs may directly impact consumer prices in industries such as automobiles, gas and oil, clothing, computers, whiskey, and avocados.
Oil Jumps
Crude oil futures have surged approximately 2% in response to Trump's tariffs on Canadian and Mexican imports. West Texas Intermediate (CL=F) surged over 3% to $75.18 per barrel, while Brent crude (BZ=F) reached $76, gaining 1%.
Reduced Duty on Canadian Crude
Canada and the US recognize their mutual dependence on energy, resulting in a reduced 10% tariff on Canadian crude. However, Trump's forthcoming tariffs could potentially target a broader range of goods and industries. Consumers should anticipate price adjustments as the president has warned of "pain."