US stock futures fall as Donald Trump’s tariffs set to take effect: Dow Jones declines over 600 points

US President Donald Trump’s sweeping tariffs on imports from Mexico, Canada and China have sparked fears of a new global trade war, leading to a sharp decline in futures tied to major Wall Street indices on Monday.

Dow Jones Industrial Average futures fell more than 600 points, or 1.5%.

Nasdaq 100 slides 1.8 per cent

The S&P 500 futures dropped 1.6%, while Nasdaq 100 futures fell 1.8%, according to Investor's Business Daily.


Tesla and Nvidia also saw significant losses in the stock market. Elon Musk’s Tesla lost 3.4% in premarket trading, according to Reuters, while Nvidia shed 3.8%.

Tobin Marcus, head of US policy and politics at Wolfe Research, said that markets may now have to view the remainder of Trump's tariff agenda as a direct threat, not just a concern. If this heightened sense of urgency is quickly factored into market expectations, Monday could prove to be a challenging day for investors, said Marcus, reported NBC News.

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Trump's new tariffs

Donald Trump has announced a 25 per cent levy on imports from Mexico and Canada, along with an additional 10 per cent on goods from China. The tariffs are set to come into force this Tuesday.

The only exemption under the newly approved US tariff regime is energy imports from Canada. This category would be taxed at 10 per cent. Both Canada and Mexico have announced that they are working to impose retaliatory tariffs on US goods.

China, too, has vowed "necessary countermeasures".

What about the EU?

Trump has also suggested the possibility of implementing similar protectionist measures against the European Union (EU). He was quoted by the BBC on Monday AS saying, “They don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products.”

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FAQs

1. How have Donald Trump’s tariffs affected Wall Street?
Trump's new tariffs on Mexico, Canada and China caused a sharp drop in Wall Street futures, with the Dow Jones falling over 600 points and the S&P 500 and Nasdaq 100 also experiencing significant declines.

2. What are the key details of Trump's tariff plan?
Trump has imposed a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China, effective this Tuesday.