Futures Plunge as Trump announces New China Tariffs
NEW YORK – U.S. stock futures experienced a sharp decline Friday evening following former President Donald Trump’s proclamation of a planned 100% tariff on imports from China,alongside export controls on critical U.S. software.S&P futures fell over 3.3%, the Dow Jones Industrial Average dropped 2.4%, and the Nasdaq Composite, heavily weighted with technology stocks, plummeted more than 4.3%.
the tariffs, slated to begin november 1, 2025-though Trump indicated they could be implemented sooner depending on China’s actions-would raise total U.S. tariffs against China to 130%. Trump detailed the plan in a post on his Truth Social platform,stating,”Beginning November 1,2025 (or sooner,depending on any future actions or changes taken by China),the United States of America will impose a 100% tariff on China,along with any tariff they are currently paying.”
The announcement reignites fears of a full-blown trade war between the two economic superpowers. Trump also canceled plans to meet with Chinese President Xi Jinping in South Korea, citing concerns over China’s potential export controls on rare earth elements, claiming China has sent letters to countries worldwide outlining these plans.
“The president’s comments are obviously not helpful to the market,” said Steve Sosnick, chief market analyst at Interactive Brokers. “We’ve finally gotten past the worst of the tariff concerns and now we’re faced with another round of them again, and the tone of his comments was certainly quite aggressive.”
The move marks a significant escalation in trade tensions, potentially impacting global markets and supply chains.
