Stock market today: Dow, S&P 500, Nasdaq futures plummet after Trump hits Canada, Mexico, China with tariffs

Published On Feb 2, 2025, 7:24 PM

U.S. stock futures have sharply declined after President Trump's announcement of new tariffs on Canada, Mexico, and China. The tariffs, effective Tuesday, include 25% duties on goods from Canada and Mexico and 10% on those from China. This has triggered concerns regarding potential retaliatory measures from these countries, leading to uncertainty in the markets and impacting several sectors. As a result, the Dow, S&P 500, and Nasdaq futures dropped significantly, with Nasdaq futures down as much as 2.2%. The news has also seen a rise in the U.S. dollar and crude oil prices, amid fears of increased costs for consumers on a variety of goods.

Stock Forecasts

SPY

Negative

The announcement of tariffs is likely to lead to increased costs for various sectors, particularly those reliant on imports from the impacted countries. These costs may be passed on to consumers, further driving inflation concerns, which can affect overall market stability and investor confidence. Additionally, the potential for retaliatory tariffs may exacerbate the trade tensions and disrupt business operations, particularly in the manufacturing and automotive sectors.

Related News

President Trump’s new tariffs on goods from Canada, Mexico and China are likely to result in higher prices for lots of products, including computers, tequila and gas.

SPY
XLY

Stock futures tumbled Sunday night to kick off a new trading month as investors weighed new U.S. tariffs on goods from key trade partners.

The invoking of national security to unravel trade agreements could scramble the international trading system in China’s favor.