US stock futures sharply declined on Sunday night in response to President Donald Trump’s announcement of new tariffs on Canada, Mexico, and China, which could signal a turbulent week ahead for global markets.
At 12:10 AM Eastern Time, Dow futures were down by more than 670 points, S&P 500 futures dropped nearly 2% (over 125 points), and Nasdaq futures fell by almost 600 points.
On the other hand, the US Dollar strengthened nearly 1%, rising to 109.4 after briefly dipping to 107. This surge in the dollar pushed the Canadian Dollar to its lowest level since 2003, the Euro to its lowest since November 2022, and the Mexican Peso to its lowest point in almost three years.
The dollar’s gain is largely attributed to expectations that the new tariffs will drive inflation and keep US interest rates high, while hurting foreign economies more than the US. This adds to the appeal of the dollar as a safe-haven asset, as foreign currencies struggle due to reduced American demand for more expensive imports.
Trump’s tariff decision includes a 25% tax on imports from Canada and Mexico and a 10% tariff on China, along with the removal of the $800 exemption for duty-free parcels entering the US.
