US stock market futures saw a sharp decline on Sunday, following President Donald Trump’s announcement of new tariffs on Canada, Mexico, and China. The tariffs, set to take effect on Tuesday, have sent markets into a downward spiral.
Futures Drop Across Major Indices
Dow Futures: Dow futures were down 1.4%, or over 600 points.
S&P 500 Futures: S&P 500 futures dropped by 1.9%.
Nasdaq Futures: Futures for the tech-heavy Nasdaq Composite were down 2.4% at 6:36 p.m. ET.
Bitcoin: The cryptocurrency saw a 3.5% drop over the last 24 hours.
The significant futures selloff suggests that major indexes will open sharply lower when trading begins on Monday at 9:30 a.m. ET.
Tariff Responses from Canada, Mexico, and China
The announcement of the tariffs triggered immediate reactions from trade partners:
Mexico: Mexican President Claudia Sheinbaum stated that her country would impose retaliatory tariffs.
Canada: Canadian Prime Minister Justin Trudeau also announced “far-reaching” retaliatory levies.
China: China’s commerce ministry indicated that it would file a complaint with the World Trade Organization and take “corresponding countermeasures,” though details were not provided.
Canadian Retaliation
Canada’s immediate tariffs will target $30 billion worth of US goods, effective Tuesday. In 21 days, additional tariffs on $125 billion of American products will follow. Trudeau emphasized that these measures would give Canadian businesses time to find alternatives.
According to senior government officials, more than 1,200 goods will be impacted by Canada’s immediate tariffs. States like Florida, which exports agricultural goods such as orange juice and vegetables to Canada, are expected to be particularly affected.
Currency Movements
The Mexican peso and Canadian dollar both weakened against the US dollar in response to the tariffs.
The Chinese yuan also reached a new low following the announcement.
Economic Impact on American Consumers
Economists have warned that American families could bear the brunt of the new tariffs. President Trump acknowledged the potential for “some pain” in his Truth Social post, as the tariffs are expected to increase the prices of various goods.
Agricultural products: Mexico and Canada are major sources of the US’s imported agricultural goods, meaning the tariffs could lead to higher grocery prices.
Other goods: Items like gas, steel, and cars are also expected to become more expensive for US consumers.
The situation continues to evolve, with the full economic impact yet to be seen.
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