Dow futures slammed by 600 points after Trump hits Canada, Mexico and China with tariffs

from CNBC

Stock futures dropped to kick off a new trading month after President Donald Trump hit several key U.S. trading partners with tariffs, raising fears that a full-blown trade war would disrupt global supply chains, reignite inflation and slow the economy.

Futures tied to the Dow Jones Industrial Average fell 616 points, or 1.4%. S&P 500 futures dropped 1.6%, while Nasdaq-100 futures lost 1.8%. Futures on the Russell 2000, the small-cap benchmark, lost 2.1%. The Cboe Volatility Index, Wall Street’s fear gauge, briefly spiked above 20 before trading around 19.

The impact from the new tariffs ricocheted around the globe in a risk-off move:

• Major European equity markets sunk with Germany’s Dax benchmark off by nearly 2%.
• Bitcoin tumbled to around the 95,000 level from above $102,000 before the weekend. Ether lost 12%.
• The ICE U.S. Dollar Index, a measure of the U.S. dollar versus several currencies, leaped 1%.
• WTI crude oil jumped 2% on concern of supply disruptions in North America from the new tariffs.

President Donald Trump on Saturday slapped a 25% tariff on goods from Mexico and Canada. He also placed a 10% levy on imports from China. Energy imports from Canada received a lower 10% tariff. Canada responded with retaliatory tariffs of its own, while Mexico said it would explore levies on U.S. imports. The Chinese government, meanwhile, said it would file a lawsuit with the World Trade Organization.

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Oil prices rise 0.6 percent to $76.13 amid potential disruptions from Trump’s tariffs

from Middle East Economy

Oil prices surged on Monday following U.S. President Donald Trump’s announcement of extensive tariffs on imports from Canada, China, and Mexico. The focus on oil prices increase is evident as these tariffs have sparked concerns regarding potential disruptions in oil supply chains, especially from Canada and Mexico, which are major crude suppliers to the U.S.

Tariffs raise concerns for oil supply

At 20:05 ET (01:05 GMT), Brent Oil Futures were 0.6 percent higher at $76.13 a barrel, while crude oil WTI futures expiring in March jumped 1.1 percent to $72.75 a barrel. The new tariffs, effective Tuesday, impose a 25 percent levy on goods from Canada and Mexico and a 10 percent tariff on imports from China. Notably, Canadian energy products were also among the targeted items, facing a 10 percent levy.

Impact on U.S. oil imports and refiners

The U.S. imports approximately 4 million barrels of Canadian oil and nearly 500,000 barrels of Mexican oil daily. The newly imposed tariffs are anticipated to drive up costs for U.S. refiners, particularly those located in the Midwest and Gulf Coast regions, which could result in higher fuel prices and potential production cuts.

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