Wall Street futures tumble as China hits back with tariffs

Wall Street futures saw a decline following China's retaliatory measures. S&P 500 futures dropped by 1.24%, Nasdaq 100 by 1.22%, and the Dow by 1.41% on Friday. The impact of Trump's tariffs resulted in a $2.4 trillion drop in U.S. equities on Thursday.

The benchmark S&P 500 experienced a significant 4.8% decrease, marking its largest one-day percentage decline since June 2020. Closing at 5,396.52 points, it reached a more than seven-month low.

On Friday, China escalated its trade dispute with the United States by implementing a range of retaliatory measures, which include imposing high tariffs and export controls on essential materials. The Chinese Finance Ministry announced that starting April 10, a 34% tariff will be applied to all US goods, intensifying the ongoing trade conflict.

This decision came after China urged the US on Thursday to revoke its recent tariffs and promised retaliatory actions to protect its own economic interests. The additional tariffs imposed by Beijing are a direct response to the trade actions taken by President Trump, including reciprocal tariffs totaling 34% on top of the 20% previously imposed earlier this year. This brings the total new tariffs to 54%, approaching the 60% mentioned by Trump during the US election campaign.

It is worth noting that China's annual sales of over $400 billion worth of goods to the US surpass those of any other country, underscoring the significance of this trade relationship.