Dow, S&P, Nasdaq Futures Plunge on Trump Tariffs
US stock futures are tumbling sharply as Wall Street grapples with the impact of President Trump's announced tariffs on China, Mexico, and Canada.
* Nasdaq futures (NQ=F) lead the decline, plunging 2.2%.
* S&P 500 futures (ES=F) dive 1.6%.
* Dow futures (YM=F) stumble 1.1%, or approximately 500 points.
The tariffs, set to take effect Tuesday, include 25% duties on Canada and Mexico and 10% on China. Energy imports from Canada will be subject to a lower 10% duty.
Over the weekend, the US dollar index (DX=F) reached its highest level in nearly a year. Crude oil (CL=F) also surged by around 2%.
Focus is now shifting to potential retaliatory measures from Canada, Mexico, and China. Canada has announced plans to impose counter-tariffs on $107 billion worth of American goods.
The trade war is creating "considerable uncertainty about President Trump's trade agenda for 2025." This uncertainty is a factor in the Federal Reserve's decision to maintain interest rates amid concerns over rising inflation.
The tariffs are expected to directly impact consumers across various industries, including automobiles, auto parts, gas, oil, clothing, computers, whiskey, and avocados.