US stock futures slid sharply as Wall Street reacted to the full implementation of President Trump’s sweeping tariffs on major US trading partners, which took effect at 12:01 a.m. on Wednesday.
- S&P 500 futures fell by 1.8%
- Nasdaq futures dropped 1.9%
- Dow Jones Industrial Average futures sank 1.5%
The tariffs — dubbed “reciprocal” by Trump — caught markets off guard when announced last week and are now driving market turmoil. Tuesday’s trading session saw another volatile swing, ending with a sharp reversal lower. The S&P 500 inched closer to a bear market, while the Nasdaq and Dow both closed at their lowest levels since January 2024.
China was hit hardest, facing 104% tariffs, while other nations including Vietnam, Japan, and India were also slammed with steep increases. Most US trading partners are now subject to a blanket 10% tariff, which had already gone into effect over the weekend.
The deepening US-China trade conflict took center stage Tuesday. China responded defiantly, promising to “fight to the end.” Despite the tension, there were brief moments of optimism — Treasury Secretary Scott Bessent said he was hopeful that “we can end up with some good deals.”
Japan, facing a 24% tariff, appears to be moving toward early talks with the US. President Trump also teased negotiations with South Korea, following what he called a “great call” with its acting prime minister.
Adding to the uncertainty, first-quarter earnings season kicks off this week. Delta Air Lines (DAL) reports Wednesday, after recently slashing its guidance due to economic uncertainty. Investors are also closely watching Thursday’s release of the Consumer Price Index (CPI), which will give a clearer picture of inflation trends just before the new tariffs fully kicked in.
