JAKARTA – Futures contracts on the Dow Jones Industrial Average (DJIA) fell by 2.5%, or 1,064 points, after the President of the United States, Donald Trump, announced a minimum 10% import tariff on several countries, effective from April 5, 2025.

According to cnbc.com, not only did Dow Jones futures decline, but S&P 500 futures also tumbled by 3.1%, while Nasdaq futures suffered a steeper drop of 3.4%.

Beyond futures contracts, shares of US multinational corporations also slumped, particularly those reliant on imported goods sales, including retailers such as Five Below (-11%), Dollar Tree (-10.7%), and GAP (-9%).

Nike and Apple saw declines of up to 9% and 7% during pre-market trading, following Trump’s retaliatory tariffs.

Technology stocks were also hit, with Nvidia and Tesla falling by 3.5% and 4.1%, respectively. The downturn in US equities is also believed to be driven by investor sentiment shifting away from volatile stocks towards safer assets.

In an interview with cnbc.com, Art Hogan, Chief Market Strategist at B. Riley Wealth Management, said the sharp declines in US stocks and futures following Trump’s tariff announcement reflect market shock over the higher-than-expected tariffs.

“The level of complication [from a haphazard policy deliverance], combined with the ultimate level of new tariffs, is worse than had been feared, and not yet priced into the market,” Hogan explained. (ZH)