Dow futures drop 500 points after Trump hits Canada, Mexico and China with tariffs: Live updates

Stock futures tumbled Sunday night to kick off a new trading month as investors weighed new U.S. tariffs on goods from key trade partners and their potential impact on the economy and corporate profits.

Futures tied to the Dow Jones Industrial Average slid 530 points, or 1.2%. S&P 500 futures dropped 1.7%, while Nasdaq-100 futures lost 2.3%.

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. The U.S. does about $1.6 trillion in business with the three countries.

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.

“Markets may now need to take the rest of Trump’s tariff agenda literally rather than just seriously … If this new level of seriousness gets priced in suddenly, Monday could be a rough day for markets,” Wolfe Research head of U.S. policy and politics Tobin Marcus said in a note.

Traders are also looking ahead to the biggest week for fourth-quarter earnings, which have become increasingly important in determining the state of the market as tariff concerns ramp and artificial intelligence stocks remain under scrutiny. More than 120 companies in the S&P 500 are set to report their results, including tech names Alphabet, Amazon and Palantir, as well consumer giants, including Walt Disney and Mondelez. 

The January nonfarm payrolls report will also be out Friday, adding color to the employment picture so far this year. Economists polled by Dow Jones expect that 175,000 jobs were added last month. The unemployment rate is predicted to have remained unchanged at 4.1%.

Stocks are coming off of a volatile few weeks. The three major U.S. indexes ended Friday’s trading session in the red, but traders still closed off the first month of the year with gains. The S&P 500 gained 2.7% and the tech-heavy Nasdaq Composite added 1.6% in January, while the Dow Jones Industrial Average outperformed during the period, jumping 4.7%.

U.S. dollar edges 1% higher after Trump tariffs

The U.S. dollar advanced nearly 1% on Sunday night, continuing gains since President Donald Trump implemented tariffs over the weekend. The currency is trading near five-year highs.

— Pia Singh

Gasoline futures follow oil prices higher

Another part of the energy market swung higher following the U.S. tariffs on Mexico, Canada and China. RBOB Gasoline futures were last up 3.3% at $2.1275 per gallon. The move shows traders expect these levies to drive up energy costs in the near term.

— Fred Imbert

Bitcoin falls, gold rises in risk-off move after U.S. tariffs

Traders appeared to search for safety in early Sunday night trading after the U.S. hit key trade partners with hefty tariffs on goods.

Bitcoin dipped back below $100,000, losing 3.6% to trade at $97,554.24. Gold, a traditional safe-haven asset, ticked 0.3% higher to $2,842.60 per ounce.

— Fred Imbert

Tariffs could make Super Bowl staples more expensive, economist warns

The U.S. tariffs on Mexican, Canadian and Chinese goods come about a week before the Super Bowl, perhaps the biggest U.S. sporting event of the year.

With these levies in place, Americans could see a substantial price hike when shopping certain staples consumed during the event, such as avocados, RSM U.S. chief economist Joe Brusuelas warned.

“Whether you make guacamole from scratch, as my grandmother Juanita liked to do, or buy pre-made spicy guacamole from [grocery store chain] Central Market in Austin, Tex., it’s going to cost more,” Brusuelas said.

“A seven-ounce package at Central Market, which currently costs $4.98, would jump to $6.22 if the 25% tariff were fully passed along to consumers like me,” he said. “Some producers and manufacturers may elect to absorb some of the cost of the tariffs, but at 25%, that cost is too big to completely absorb.”

— Fred Imbert, Jeff Cox

Canada, Mexico, China and Europe respond to Trump tariffs

The U.S. on Saturday imposed levies on imports from Canada, Mexico and China. Here’s how those countries, and the European Union, reacted:

• Canada: Prime Minister Justin Trudeau slapped retaliatory tariffs of 25% on $155 billion worth of U.S. goods. “Like the American tariffs, our response will also be far-reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes,” Prime Minister Justin Trudeau said.
• Mexico: President Claudia Sheinbaum slammed the new levies, saying she instructed the country’s secretary of the economy to “implement the Plan B we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.”
• China: The country said it would file a lawsuit with the World Trade Organization. “The U.S.’s unilateral tariff hike seriously violates WTO rules, does nothing to resolve its own issues, and disrupts normal economic and trade cooperation between China and the U.S.,” the Chinese Ministry of Commerce said in a statement Sunday, according to an NBC translation.
• The European Union: A spokesperson for the EU said the bloc would “respond firmly” if President Donald Trump imposed tariffs on the region. “Across-the-board tariff measures raise business costs, harm workers and consumers. Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides,” the spokesperson said.

— Katrina Bishop

Oil prices pop after U.S. hits Mexico, Canada and China with tariffs

Oil prices began Sunday trading higher after the U.S. slapped tariffs on goods from China, Canada and Mexico — all key trading partners.

West Texas Intermediate futures were up 2% at $74.20 per barrel. International Brent crude climbed 1% to $76.42 per barrel.

— Fred Imbert

Stock futures open sharply lower

Stock futures opened lower on Sunday night. Futures tied to the Dow Jones Industrial Average dropped 483 points, or 1.01%. S&P futures lost 1.9%, while Nasdaq futures shed 2.7%.

— Pia Singh