The U.S. stock market is staring at sharp losses on Thursday as futures for all major indices tumbled in response to President Donald Trump’s announcement of a 10% reciprocal tariff on all U.S. trading partners. The sweeping move, part of Trump’s broader “Liberation Day” strategy to revive American industry, has sparked global concern and shaken investor confidence.
As of the latest pre-market updates:
- Dow Jones Industrial Average futures were down 2.5%, signaling a drop of over 1,000 points at the opening bell.
- S&P 500 futures dropped 3.1%,
- Nasdaq 100 futures took the biggest hit, plunging 3.5% due to concerns over global tech supply chains.
The market turmoil follows Trump’s surprise move to impose a universal 10% baseline tariff on all countries, with higher, customized rates for key trading partners such as China (34%), the EU (20%), and India (26–27%). While energy and pharmaceuticals were excluded from the list, the broad application of tariffs has raised fears of a global economic slowdown.
Crude oil markets react sharply
Brent crude, the international oil benchmark, fell over 4% to $71.55 per barrel, while West Texas Intermediate (WTI) dropped below $70. Though energy products were spared in the initial tariff rollout, traders remain wary that the tariffs will curb global growth and thus lower demand for oil.
The broader concern is that rising costs and retaliatory measures from other nations could undermine supply chains, consumer demand, and corporate earnings.
Analysts expect volatility to continue until there is more clarity on retaliatory responses and potential exemptions or adjustments to the announced tariffs. Markets across Asia and Europe also traded sharply lower in early hours following the announcement.
