U.S. stock futures plummet! Trump's tariff stick swings globally

Global Stock Market Plummets

In the Asia-Pacific market, the Japanese and South Korean stock markets opened lower, with the Nikkei 225 index and the KOSPI both dropping over 2%.

U.S. stock futures fell sharply overnight, with the Nasdaq 100 index futures down over 2%, NVIDIA down over 6%, and Tesla briefly down over 5%.

The Hang Seng Index opened down 0.87%, the Hang Seng Tech Index fell 0.51%, Alibaba rose nearly 5% (due to the announcement of its latest version of the Qwen AI model), while Xiaomi, SMIC, and Hua Hong Semiconductor rose over 1%. Bilibili fell over 5%, and JD.com dropped nearly 3%. Today marks the first trading day of the Year of the Snake for the Hong Kong stock market.

Trump's Tariff Hammer Strikes Globally

Canada and Mexico

On February 1st local time, the U.S. government announced a 25% tariff on imported goods from Canada and Mexico.

U.S. President Trump signed a tariff order that day, imposing an additional 25% tariff on imported products from Canada and Mexico, and a 10% tariff on energy resources from Canada. The tariffs are set to take effect on the 4th. The White House stated that if retaliatory tariffs are imposed by the U.S., the U.S. may increase the tariff rates.

After the U.S. announced tariffs on Canada, Canadian Prime Minister Justin Trudeau stated via social media that he met with the provincial premiers and cabinet that day and would also speak with Mexican President López Obrador. Trudeau said Canada did not want this situation but was prepared.

Trudeau later held a press conference stating that as retaliation for U.S. tariffs, Canada would impose a 25% tariff on U.S. products worth CAD 155 billion. Of this, CAD 30 billion worth of goods will take effect on February 4th, and CAD 125 billion worth of goods will take effect within 21 days.

Trudeau also mentioned that Canada is considering several non-tariff measures, including those related to critical minerals, energy procurement, and other partners.

On the same day, Mexican President López Obrador stated that Mexico would take countermeasures, having instructed Mexican Economy Minister Ebrard to activate the "Plan B" previously prepared by the Mexican government to impose tariffs on products exported to the U.S.

China

On February 1st, U.S. President Trump signed an executive order imposing a 10% tariff on goods imported from China. This latest trade protection measure has faced widespread opposition from the international community and within the U.S.

The White House stated that the U.S. would impose an additional 10% tariff on all goods imported from China on top of existing tariffs. Trump said this aligns with the "protectionist measures" he supports.

A spokesperson for the Chinese Ministry of Foreign Affairs previously stated that China has repeatedly expressed its position, firmly believing that there are no winners in a trade war or tariff war. China will steadfastly safeguard its national interests. A spokesperson for the Chinese Ministry of Commerce also stated that China's position on tariffs has been consistent. Tariff measures are detrimental to both China and the U.S., as well as to the entire worldThe EU expresses regret over the US imposing tariffs on Canada, Mexico, and China

According to Xinhua News Agency, a spokesperson for the European Commission stated on the 2nd that the EU regrets the US decision to impose tariffs on goods imported from Canada, Mexico, and China. The tariffs will cause unnecessary economic disruption and drive inflation, which is harmful to all parties involved.

The spokesperson emphasized that open markets and respect for international trade rules are crucial for achieving strong and sustainable economic growth. The EU remains committed to promoting growth and economic stability through low tariffs and maintaining a strong, rules-based trading system.

The spokesperson mentioned, "We have not yet been informed of any additional tariffs on EU products," and that the EU will "respond firmly" to any trade partners that impose unfair or arbitrary tariffs on EU goods.

US President Trump has previously threatened to impose tariffs on goods exported to the US from the EU. He recently stated that if products are not produced in the US, they will face tariffs of "hundreds of billions or even trillions of dollars."