U.S. stock futures slid in Asian trading on Thursday as investor optimism faded quickly following China’s move to enforce steep new tariffs on American goods. The surprise reversal came just hours after President Donald Trump announced a temporary easing of tariffs for most trading partners — but crucially, not for China.
By 00:27 ET (04:27 GMT), futures across major U.S. indexes had turned red:
- S&P 500 Futures dropped 0.8% to 5,448.50
- Nasdaq 100 Futures fell 1.4% to 19,014.00
- Dow Jones Futures declined 0.3% to 40,722.00
China Strikes Back with 84% Tariffs as U.S.-China Trade Standoff Deepens
At midnight ET, Beijing raised its retaliatory tariffs on U.S. goods from 34% to a staggering 84%, directly responding to the recent spike in duties imposed by the Trump administration. These newly enacted levies intensified concerns over a prolonged trade conflict between the world’s two largest economies.
Adding fuel to the fire, Trump confirmed that while most nations would benefit from a 90-day suspension on reciprocal tariffs, China would not. Instead, tariffs on Chinese imports were hiked to 125%, escalating tensions and overshadowing Wednesday’s relief rally.
Wall Street Rally Fizzles as Traders Brace for Volatility
On Wednesday, equity markets celebrated the partial tariff pause, with the S&P 500 jumping 9.5%, the Nasdaq surging 12.2%, and the Dow closing 8% higher. But the mood quickly shifted in Asian hours as traders digested the selective nature of the policy and China’s uncompromising counterattack.
Analysts warn that Trump’s tariff policy has historically shifted without much warning. ING economists cautioned:
“It’s premature to call this a return to stability. The President still needs funding for his tax proposals — and tariffs are a key revenue source. Today’s pause may not last.”
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