FX.co ★ US Futures Drop as Trump Announces Auto Tariffs

U.S. stock futures declined on Thursday following President Donald Trump's announcement of a 25% tariff on all foreign-made automobiles. These new tariffs, scheduled to be implemented on April 2, align with reciprocal duties aimed at countries that impose their own taxes on U.S. goods — a policy Trump indicated would persist throughout his second term. This announcement led to shares of General Motors and Ford decreasing by approximately 6% and 5%, respectively. The market is experiencing heightened volatility due to uncertainty surrounding the tariffs' extent and possible retaliatory measures, sparking concerns of wider economic consequences. In Wednesday’s trading session, the S&P 500 and Nasdaq Composite fell by 1.12% and 2.04%, respectively, dragged down by a significant sell-off in technology stocks. The Dow also edged lower by 0.31%. Major technology companies such as Tesla (-5.6%), Nvidia (-5.7%), Meta (-2.5%), Palantir (-4.4%), and Amazon (-2.2%) were at the forefront of this downturn.