U.S. stock futures dropped sharply after Trump’s announcement of new tariffs on China, Mexico, and Canada, with the Russell 2000 and Nasdaq 100 futures leading the decline.
U.S. Stock Futures Fall Following Trump’s New Tariffs
U.S. stock market futures dropped after President Donald Trump said he would impose new taxes on China, Mexico, and Canada. Also, in the last day, nearly $500 billion left the crypto market.
On February 3, Nasdaq 100 futures dropped by 2.7%, Russell 2000 fell by 3.2%, S&P 500 decreased by 2%, and Dow Jones futures went down by 1.5%, as reported by Finviz.
The market reacted after Trump announced on February 1 that he would place a 25% tax on imports from Canada and Mexico, and a 10% tax on imports from China, starting on February 4.
George Saravelos from Deutsche Bank said that markets need to seriously reassess the risks from the trade war. Tobin Marcus from Wolfe Research added that investors should take Trump’s tariff plans exactly, not just seriously.

At the same time, the crypto market dropped more than 13% in value, with $450 billion leaving the market. This reduced the overall market value to $3.12 trillion, the lowest it has been since mid-November, according to CoinGecko.
Even with the current market issues, Jeff Park from Bitwise believes that Trump’s trade war might boost Bitcoin prices in the long term. This could happen because the U.S. dollar is losing value and government bond returns are decreasing.