US stock futures on Monday pointed to sharp losses for the major indexes, as Wall Street showed the effects of President Donald Trump’s announcement of tariffs on China, Mexico, and Canada.
Nasdaq 100 futures (NQ=F) dived 1.9%, leading the way down but paring losses notched earlier in the morning. S&P 500 futures (ES=F) spiraled 1.7%, and futures attached to the Dow Jones Industrial Average (YM=F) tumbled 1.5%, or over 600 points.
The tariffs, set to take effect on Tuesday, will include 25% duties on Canada and Mexico, and 10% on China. Energy imports from Canada will be lower with a 10% duty.
Trump has also said tariffs on Europe will "definitely happen," but gave no further detail. European stock markets (^STOXX) moved lower Monday.
The US dollar index (DX-Y.NYB, DX=F) rose to trade near its highest levels in two years. Meanwhile, West Texas Intermediate crude futures (CL=F) jumped well over 2%, outpacing the 1.6% rise for the international benchmark Brent (BZ=F).
With Trump’s tariffs arriving as expected over the past week, focus has been honed in on retaliatory announcements. As Yahoo Finance's Ben Werschkul reported, Canada and Mexico were quick to announce measures across a range of US goods. Prime Minister Justin Trudeau said Canada will place 25% counter-tariffs on around $107 billion in American-made products.
The trade war is causing "considerable uncertainty about President Trump's trade agenda for 2025." That uncertainty is a large part of the Fed’s desire to keep a hold on rates for fears of a rise in inflation.
The tariffs are due to impact consumers directly across a number of industries. Automobiles and auto parts, gas and oil, clothes, computers, whiskey, and avocados are a small selection of items where prices are expected to rise.
source: finance.yahoo.com
