Morning Business Report: Stock futures sink amid new tariffs, Dow drops 1,000 Points

Stock futures are sinking as markets react to President Donald Trump's announcement of sweeping new tariffs.

(LILAMAX)- Stock futures are sinking as markets react to President Donald Trump’s announcement of sweeping new tariffs. All major indices are down, with the Dow tumbling 1,000 points, the Nasdaq dropping 4.5%, and the Dow down 2.2% as trading opens today.

The tariffs, which aim to promote U.S. manufacturing and address trade imbalances, are set at half the rate of what other countries charge America, according to the White House. The measures include a 10% global tariff on all imports, excluding those covered by free trade agreements such as USMCA (U.S., Mexico, and Canada). Additionally, a “reciprocal” tariff will be imposed on 60 countries, including Vietnam, China, India, and the European Union, based on the tariffs they charge the U.S. A 25% tariff on all car imports went into effect at midnight.

President Trump has referred to these actions as “Liberation Day,” intended to “level the playing field” for American workers and industries. The United Auto Workers believe the tariffs will increase domestic manufacturing jobs and help revitalize U.S. industries like steel and auto manufacturing.

However, economists have expressed concerns that these tariffs could lead to higher consumer prices and potential inflation. There is also the risk of retaliatory measures from affected countries, which could further disrupt global trade relations.

In other market news, the U.S. Treasury and gold are both up in trading Wednesday, with gold reaching a futures high of nearly $3,200 an ounce.

Additionally, Amazon has made a last-minute bid to buy TikTok as the U.S. ban on the popular platform is set to go into effect this Saturday.