U.S. stock futures slipped on Sunday as investors braced for a wave of tariffs set to be announced this week. President Donald Trump, doubling down on his aggressive trade stance, indicated that the reciprocal tariffs would target nearly all countries.
Investors on Edge as Trump Plans Broad Tariffs Targeting Global Trade Partners
“I couldn’t care less if the prices on foreign cars go up, they’re going to buy American cars,” Trump said in a Saturday interview with NBC News. “We have plenty.”
The upcoming 25% tariffs on foreign-made cars and auto parts are scheduled to take effect Thursday. On Wednesday, Trump is set to unveil additional tariffs, which the Wall Street Journal reports could reach as high as 20% against most of America’s trading partners.
Market Reactions and Investor Anxiety
As of 11 p.m. Eastern on Sunday, Dow Jones Industrial Average futures (YM00) fell around 180 points or 0.4%, recovering slightly from earlier losses. S&P 500 futures (ES00) dropped 0.7%, while Nasdaq-100 futures (NQ00) declined by 1.2%. Bitcoin (BTCUSD) also slipped, dipping below $82,000.
Friday’s session had already deepened March’s losses, with the Dow dropping 1.7%, the S&P 500 falling 2%, and the Nasdaq Composite sinking 2.7%. Concerns over tariffs, persistent inflation, and disappointing economic data have heightened fears of stagflation—a scenario characterized by high inflation and slow economic growth.
Global markets also reacted negatively. Japan’s Nikkei 225 plunged 4%, while declines were seen across Hong Kong’s HSI (-1.3%), South Korea’s KOSPI (-3%), and Australia’s ASX 200 (-1.74%).
Trump Dismisses Concerns Over Higher Prices
Trump dismissed reports suggesting he had cautioned U.S. automakers against raising prices due to tariffs. “I never said that,” he told NBC News. “I couldn’t care less if they raise prices, because people are going to start buying American-made cars.”
A White House aide later clarified that Trump was referring to foreign-made vehicles. However, analysts remain skeptical that U.S. automakers can avoid price hikes given the increased costs of imported parts.
Analysts Warn of Rising Car Prices
Morgan Stanley analysts estimate car prices could rise by 11% to 12% on average to compensate for the tariffs. Bloomberg Intelligence’s Steve Man echoed this concern, predicting a significant squeeze on automaker margins.
“There’s no way to avoid the impact,” Man said. “Even if Trump pressures companies to keep prices steady, it will eat into their profits.”
Stephen Innes, managing partner at SPI Asset Management, emphasized the broader economic impact. “The 25% tariff on imported vehicles isn’t just a policy shift—it’s a seismic event for global supply chains and inflation.”
A Permanent Trade Shift?
Trump signaled the tariffs would be a lasting measure, noting that while the previous levies on Mexico and Canada saw delays, this time he plans to enforce the April 2 deadline.
“Negotiations are always possible,” Trump said, “but only if they’re willing to give us something of great value.”
With tariff uncertainty looming, investors will be closely monitoring the market response and any subsequent economic fallout in the weeks ahead.
