Washington, Feb. 3, 2025 – 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 dived 2.3%, leading the way down. S&P 500 futures spiraled 1.9%, and futures attached to the Dow Jones Industrial Average stumbled 1.5%, or around 650 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.
The US dollar index rose to trade near its highest levels in 12 months. Crude oil futures jumped around 2%.
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 part, gas and oil, clothes, computers, whiskey, and avocados are a small selection of items whose prices are expected to rise. (Yahoo Finance)
