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US stock futures struggled for a footing on Thursday after President Trump pushed ahead with hefty new tariffs on car imports, stoking concerns about a potential full-on trade war and global economic harm.
Futures on the S&P 500 (ES=F) and the Dow Jones Industrial Average (YM=F) wobbled along the flat line on the heels of a losing day for the major gauges. Contracts on the tech-heavy Nasdaq 100 (NQ=F) slipped 0.1%.
Trump signed an executive order placing the 25% tariffs on foreign-made autos on Wednesday, to begin April 2, the same day that reciprocal tariffs are set to take effect. Stocks fell in anticipation of the announcement, seen as a return to a hardline stance likely to provoke retaliatory measures.
Adding more fuel to fears, Trump said on Thursday that tariffs “far larger than currently planned” will be imposed on Canada and the EU if they work together to “do economic harm” to the US. Both key US trading partners have responded sharply to the new duties.
CBOT – Delayed Quote USD
As of 8:12:34 AM EDT. Market Open.
YM=F ES=F NQ=F
Automaker stocks in Japan and Europe slumped as Wall Street assessed the potential hit from the new tariffs. Among US car giants, General Motors (GM) fell over 6%, while Stellantis (STLA) slipped almost 2% and Ford (F) ticked up nearly 1%.
Investors remain worried that the US economy could slide into recession if Trump’s new levies exacerbate sticky inflation and slowing economic growth. The final reading of fourth quarter GDP is due on Thursday, as are updates on personal consumption and weekly jobless claims.
That lays the ground for Friday’s release of February’s Personal Consumption Expenditures Index, the Federal Reserve’s preferred inflation gauge.
Fed Chair Jerome Powell recently reassured markets that rising prices from Trump’s tariffs are expected to be “transitory.” But that stance has raised questions, including from St. Louis Fed president Alberto Musalem.
LIVE 3 updates
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Good morning. Here’s what’s happening today.
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GameStop stock slips amid plan to raise $1.3 billion for bitcoin buying spree
GameStop’s (GME) shares fell almost 7% in premarket after the company said it is looking to raise $1.3 billion to buy bitcoin (BTC-USD).
The games retailer plans to raise the funds via convertible senior notes.
Yahoo Finance’s Josh Schafer reports:
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Elon Musk claims Tesla will not be ‘unscathed’ by upcoming auto tariffs
Tesla (TSLA) CEO Elon Musk has commented on X that Tesla will face “significant” impact from President Trump’s auto tariffs.
The statement was made in response to an infographic detailing the amount various automakers (including Ford (F), Toyota (TM), and GM (GM)) will be affected by Trump’s tariffs on “foreign-made vehicles” — with Tesla listed as being 100% US-made.
