Dow, S&P 500, Nasdaq Futures Plummet After Trump Tariff Hikes

U.S. stock futures pointed to sharp losses for major indices as Wall Street reacted to President Donald Trump’s announcement of tariffs on China, Mexico, and Canada.

The tariffs are expected to directly impact consumers across various industries, including automobiles and auto parts, gas and oil, clothing, computers, whiskey, and avocados. I Photo: New York Stock Exchange Facebook

Nasdaq futures plunged 2.2%, leading the decline, while S&P 500 futures tumbled 1.6%, and Dow futures dropped 1.1%, or around 500 points, Yahoo Finance's Rian Howlett reported.

On Sunday evening, the U.S. dollar index climbed near its highest level in the past year, while crude oil prices jumped about 2%. With Trump’s tariffs materializing as expected over the past week, attention has shifted to retaliatory measures.

As Yahoo Finance's Ben Werschkul reported, Canada, Mexico, and China quickly announced countermeasures affecting a range of goods.

Canadian Prime Minister Justin Trudeau stated that Canada would impose 25% counter-tariffs on approximately $107 billion worth of American-made products. The escalating trade war has created "considerable uncertainty about President Trump’s trade agenda for 2025."

This uncertainty is a key reason the Federal Reserve remains cautious about adjusting interest rates, fearing an inflationary spike.

The tariffs are expected to directly impact consumers across various industries, including automobiles and auto parts, gas and oil, clothing, computers, whiskey, and avocados—all of which are likely to see price increases.