United States stock futures traded lower on Wednesday evening (Thursday AEDT) as investors reacted to President Donald Trump’s proposed 25% tariff on foreign cars, sparking fresh concerns about trade policy and economic stability.
By 9:40 am AEDT (10:40 pm GMT) Dow Jones Industrial Average futures fell 0.3%, while S&P 500 and Nasdaq 100 futures each slipped 0.4%.
Trump had previously suggested that auto tariffs could be implemented ahead of the April 2 deadline for reciprocal trade measures, referring to the date as “Liberation Day”. Since beginning his second term in January, Trump has pushed for duties on nations that impose tariffs on U.S. imports.
Shares of major automakers fell in response, with General Motors shedding 7.1% in extended trading and Ford dropping 4.7%.
Stock markets hit session lows during Wednesday regular trade following White House confirmation that Trump would formally announce the tariffs later in the day.
ANZ analysts noted: "Markets are squarely focused on the U.S. tariff announcements, expected next week, following the planned conclusion of the U.S. trade review on 1 April.
"There is some chatter that the date of announcements could shift. But until clarity emerges on the magnitude and scope of tariffs and their implementation, risk appetite is likely to remain muted.
"Meanwhile, U.S. consumer confidence is falling, some measures of inflation expectations have spiked, and Minneapolis Fed President Kashkari noted that tariffs are having a dramatic effect on confidence."
Investors are also monitoring key economic data later this week, including fresh jobless claims and the March personal consumption expenditures (PCE) price index. The PCE is the Federal Reserve’s preferred measure of inflation and could influence future monetary policy decisions.
