Stock Futures Fall Ahead of Trump’s ‘Liberation Day’ Tariffs

NEW YORK CITY, U.S. — U.S. stock futures dipped early Monday as investors braced for President Donald Trump‘s upcoming tariffs, set to take effect on what he has labeled ‘Liberation Day.’ The Dow Jones Industrial Average fell by 145 points, or 0.35%, while the S&P 500 and Nasdaq dropped by 0.64% and 1.18%, respectively.

Starting Wednesday, the Trump administration will enact a series of tariffs, including a significant tax on ‘all cars that are not made in the United States.’ Additionally, Trump is expected to reveal plans for reciprocal tariffs, further unsettling market participants.

Concerns over the impending tariffs have loomed over the stock market, contributing to declines on Friday that closed the last full trading week of March. Over the weekend, uncertainty persisted as Trump reportedly pressured his advisors to adopt a more aggressive stance on tariffs, although he did not clarify the potential impacts during a Saturday interview with NBC News.

Investors are seeking answers about which trading partners will be affected by these new duties and the extent of the tariff rates. ‘Tariff risk has been well telegraphed and is largely priced in corners of the market,’ said Emmanuel Cau, an equity strategist at Barclays. ‘So Liberation Day may not be a complete shocker. However, no one wins from a trade war, and clouds are gathering over the global growth outlook,’ he added.

Cau also noted that negotiations are likely to begin after April 2, creating an extended period of uncertainty regarding the final details of the tariffs. With trade tensions and economic worries mounting, all three major U.S. stock indices are on track to finish the month in the red, with the Dow down 6.3%, the S&P 500 poised for a 5.2% loss, and the tech-heavy Nasdaq suffering an 8.1% decline.

Market attention will also shift to an array of economic data set to be released this week, most notably the March jobs report, scheduled for release on Friday, April 4, at 8:30 a.m. ET.

In a related report, The Wall Street Journal highlighted Trump’s pressure on his team to take a firmer approach to tariffs. This commentary followed Trump’s remarks made on Saturday regarding the potential consequences for foreign automakers, indicating that price increases may occur as a result of the new tariffs.

As Wall Street anticipates the unveiling of these tariffs, traders are keen to see how the market will react as it navigates through this period of uncertainty.