U.S. stock futures experienced significant declines following China’s announcement of retaliatory tariffs in response to recent U.S. tariff increases. Dow Jones Industrial Average futures dropped over 600 points (approximately 2.4%), while S&P 500 and Nasdaq 100 futures also saw substantial losses of around 2% and 1.7%, respectively.

This market turbulence was triggered by China’s imposition of 84% tariffs on U.S. imports, a direct response to the U.S.’s earlier implementation of a 104% tariff on Chinese goods under President Donald Trump’s “Liberation Day” tariff policy.

The escalating trade tensions have raised concerns among investors about a potential global economic slowdown. In the technology sector, major companies such as Apple, Nvidia, and Tesla experienced further declines following recent losses. Additionally, oil prices fell, and Treasury yields climbed, with the 10-year yield reaching 4.46%, indicating increased investor anxiety. Market analysts warn that the ongoing tariff escalations could inflict lasting damage on the U.S. economy and investor confidence. Veteran strategist Marko Kolanovic noted that even if the Trump administration reverses its tariff policies, the market may not quickly recover to previous highs due to structural harm already inflicted.

In related developments, Delta Air Lines reported better-than-expected Q1 earnings but withdrew its full-year outlook, citing uncertainty stemming from the trade dispute.