Trump’s Tariff Announcement Causes Stock Futures to Plummet: What You Need to Know

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Trump’s Tariff Announcement Causes Stock Futures to Plummet: What You Need to Know


CNN

US stock market futures took a significant dip on Sunday. This came after President Trump announced hefty tariffs: 25% on goods from Canada and Mexico, and 10% on imports from China, starting Tuesday.

Dow futures fell by 1.4%, which is over 600 points. The S&P 500 futures dropped by 1.9%, and the tech-heavy Nasdaq Composite futures fell by 2.4%. Even Bitcoin wasn’t spared, dropping 3.5% in just 24 hours.

This sharp decline in futures suggests that the stock market will likely open lower when trading begins on Monday at 9:30 a.m. ET.

Following the tariff announcement, Mexican President Claudia Sheinbaum indicated that Mexico would implement retaliatory tariffs. Meanwhile, Canadian Prime Minister Justin Trudeau promised “far-reaching” countermeasures. China’s commerce ministry plans to lodge a complaint with the World Trade Organization and has hinted at further actions, although specifics weren’t provided.

Trudeau mentioned that Canada would introduce immediate tariffs on $30 billion worth of American goods. This will be followed by additional tariffs on $125 billion of US products in 21 days, allowing Canadian companies to seek alternatives.

The immediate tariffs will affect over 1,200 items, according to Canadian officials. This could especially impact states like Florida, which exports orange juice and other produce to Canada.

The Mexican peso and Canadian dollar weakened against the US dollar after the announcement. The Chinese yuan also fell to a new low during this period.

Economists warn that American consumers may feel the impact of these tariffs. Trump himself acknowledged that there could be “some pain” for Americans due to rising prices. Groceries could become more expensive, as Mexico and Canada are key suppliers of agricultural products to the US. Other goods like gasoline, steel, and cars may also see price increases.



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