US stock market futures saw a significant drop on Sunday evening as the new tariff policy began collecting duties over the weekend, fueling concerns about global trade dynamics. The policy, which went into effect on April 2, applies a blanket 10% tariff on all goods entering the US, with additional duties on goods from 185 countries. President Trump has indicated that the market may need to “take medicine,” suggesting that the tariffs are a necessary measure.
In response to the policy, senior administration officials defended the decision, stating that the tariffs would remain in place for an extended period. Commerce Secretary Howard Lutnick emphasized that the tariffs would persist for days and weeks, while Treasury Secretary Scott Bessent downplayed concerns of a recession resulting from the tariff implementation. Economic advisor Kevin Hassett also reassured the public that the president was not intentionally targeting the stock market.
As of Saturday morning, US customs officials began collecting the new 10% tariff on imports from several countries, following a week of significant losses in the stock market. The futures market saw a continued downturn on Sunday evening, while Bitcoin, often viewed as a risk proxy, also experienced a sell-off.
In response to the tariff increases, several countries have announced retaliatory measures. Canada introduced new duties on certain US imports, and China stated it would implement countermeasures beginning April 10, including a 34% tariff on US goods. The European Union is reportedly preparing its own set of countermeasures, with a 20% tariff rate covering a significant portion of the EU’s exports to the US.
Some industry experts, including Tesla CEO Elon Musk, have expressed support for reducing tariffs, suggesting that both Europe and the US should aim for a zero-tariff system to improve trade relations.
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