Trump Tariffs Worsen Major Stock Market Declines

• Tariffs could cut into SP 500 profits
• Pressure on Dow, Nasdaq after Trump announcement
• Market uncertainty due to trade war

On Monday, U.S. stock futures signaled significant declines for major indexes, highlighting the effects of President Donald Trump's recent decision to impose additional tariffs on goods from China, Mexico and Canada. This action resulted in a substantial decline in financial market sentiment.

Nasdaq 100 futures fell 1,8%, leading the declines, followed closely by SP 500 futures, which fell 1,6%. The Dow Jones Industrial Average was not far behind, falling 1,4%, representing a loss of about 600 points. The new tariffs, which will take effect Tuesday, include a 25% increase on goods imported from Canada and Mexico and a 10% increase on Chinese goods. In addition, energy imports from Canada will face a 10% tariff.

At the time of publication, the price of Bitcoin was quoted at US$95.686,70, up 0,5% in the last 24 hours.

President Trump also mentioned that additional tariffs on European goods are a certainty, although no further details were provided. With the implementation of the tariffs approaching, European stock markets opened the week lower.

The US dollar index reached near 12-month highs, and crude oil prices also saw a rise of around 2%. Expectations of trade retaliation were also confirmed, with Canada and Mexico announcing countermeasures on a wide range of US products. Canadian Prime Minister Justin Trudeau said that “Canada will place 25% tariffs on approximately $107 billion of US-made products.”

The new tariffs, in addition to directly influencing consumer prices in sectors such as automobiles, fuel, clothing and food, also bring uncertainty to Trump's trade plans for 2025. This, according to experts, could lead the Federal Reserve to keep interest rates under control due to fears of accelerating inflation.

Goldman strategist David Kostin warned that sustained tariffs could reduce the SP 500’s earnings growth outlook by as much as 3%. That would put the index under significant pressure, given the impact on corporate earnings and valuations.