April 9 - U.S. stock futures dropped sharply Wednesday after China unveiled a sweeping set of tariffs in response to recent U.S. trade measures, intensifying global economic tensions.
Futures tied to the Dow Jones Industrial Average fell by 558 points, or roughly 1.5%, while S&P 500 futures slipped 1.3%. Nasdaq-100 futures retreated 0.9% as investor sentiment soured ahead of the market open.
Beijing said it would impose an 84% tariff on a broad range of U.S. goods beginning Thursday. This move comes just hours after a U.S. levy of 104% on Chinese imports took effect overnight, further escalating the ongoing trade standoff.
Shares of Apple (AAPL, Financial) dropped as much as 2% in early trading before recovering slightly. Ford Motor (F, Financial) and General Motors (GM, Financial) each lost more than 1% in the premarket session.
Adding to the pressure, Canada confirmed it will enact 25% duties on certain U.S.-manufactured vehicles, including those partially non-compliant with the United States-Mexico-Canada Agreement.
Analysts at Piper Sandler warned tariffs are likely to remain historically high and could rise further in the short term, barring minor trade concessions.
The S&P 500 has shed 12% over the past four sessions, while the Nasdaq Composite has tumbled 13%. The Dow has lost more than 4,500 points during that stretch.
