Stock Futures Decline Ahead of Trump’s Tariff Announcement

NEW YORK, U.S. – U.S. stock futures fell early Monday as traders anticipate greater clarity on President Donald Trump’s tariff plans, branded as ‘Liberation Day’, when a batch of tariffs is set to be enacted.

Futures fell by 145 points, or 0.35%, ahead of Wednesday’s announcement when tariffs on all cars not manufactured in the United States will take effect. Along with this, there is speculation that Trump will introduce reciprocal tariffs targeting specific countries.

The uncertainty surrounding these tariffs has contributed to a decline in equities, culminating in a weak performance on Friday, the final trading day of March. Despite the weekend, Trump did little to alleviate fears among investors, having reportedly urged his advisors to take a more aggressive stance on tariffs.

In a Saturday interview with NBC News, Trump warned that foreign automakers may respond to the impending tariffs by increasing their prices, which could further impact the market.

Investors expect to gain insight, particularly into which trading partners will be most affected and the extent of these new duties, as noted by Emmanuel Cau, equity strategist at Barclays. He commented, ‘Tariff risk has been well telegraphed and is largely priced in corners of the market. However, no one wins from a trade war, and clouds are gathering over the global growth outlook.’

Cau added, ‘Negotiations will likely start after April 2, leading to an extended period of uncertainty regarding the final scope, level, and timing of tariffs.’

Given this backdrop of escalating trade concerns, major stock indices are poised to finish March lower. The Dow Jones Industrial Average is down 6.3%, while the S&P 500 has recorded a 5.2% decline. The tech-heavy Nasdaq Composite has plunged by 8.1% this month.

This week, investors are also anticipating a significant amount of economic data, particularly the March jobs report, due for release at 8:30 a.m. ET on Friday, April 4.

Correction: This post has been updated to clarify the movements of the Nasdaq and Dow indices. Trump’s recent comments have sparked a negative sentiment across Wall Street, which has recorded substantial declines in stock values over the past week.

As of Sunday night, stock futures reflect this downward trend, with the Dow dropping by 236 points, or 0.6%, shortly after 6 p.m. ET, while the S&P 500 and Nasdaq saw losses of 0.5% and 0.7%, respectively.