Mon Feb 03 08:50:00 UTC 2025: **Trump’s Tariffs Trigger Market Plunge and Global Trade War Fears**

NEW YORK (CNBC) – U.S. stock futures plummeted Monday following President Trump’s announcement of sweeping tariffs on goods from Canada, Mexico, and China. The 25% tariffs on Canadian and Mexican goods and 10% duties on Chinese imports, along with a 10% levy on Canadian oil, sparked immediate retaliation from all three nations. Canada imposed retaliatory tariffs on $155 billion of U.S. goods, while Mexico and China vowed similar responses and legal action through the World Trade Organization. Trump cited curbing migration and fentanyl trafficking as justifications, although he has previously advocated for import controls based on economic grounds.

The tariffs threaten to significantly impact U.S. businesses operating within the North American supply chain and raise consumer prices. Pre-market trading saw drops in shares of companies like General Motors, Ford, Chipotle, and Constellation Brands, reflecting the potential impact. The move also adds to concerns about escalating trade tensions, with Trump hinting at potential tariffs on the European Union and the United Kingdom.

This dramatic development coincides with a crucial week for corporate earnings, with over one-fifth of S&P 500 companies, including Amazon, Alphabet, Eli Lilly, and Ford, set to report results. Investors will closely scrutinize these reports for insights into how companies plan to navigate the new trade landscape and the emergence of Chinese AI startup DeepSeek. The January jobs report, due out Friday, will also be a key economic indicator.

Adding to the complexity of the situation, the number of employed Americans aged 65 and older has surged by over 33% between 2015 and 2024, accounting for 7% of the workforce. This trend, attributed to factors including an aging population, labor shortages, and the shift to 401(k) plans, adds another layer to the economic picture. The market reacted negatively to the trade war news, with the S&P 500, Nasdaq, and Dow experiencing substantial pre-market losses.

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