Market volatility surged this morning as Dow futures dropped over 1,300 points following former President Donald Trump’s firm stance on tariffs. Labeling them as “necessary medicine” to fix America’s trade deficit, Trump’s comments sparked concern among investors, reviving fears of a potential trade war.
The sharp drop impacted broader indexes as well, with the S&P 500 and Nasdaq futures both falling nearly 2%. Pharmaceutical stocks led the retreat, dragged by the administration’s clarification that key sector tariffs, including those on drugs, would not benefit from a temporary delay.
Analysts say the renewed tariff talk introduces uncertainty just as markets were stabilising. “This rhetoric signals unpredictability—a factor markets fear most,” noted Orion Capital’s Anita Delgado.
While no immediate policy has changed, Trump’s increasing public influence ahead of a potential 2024 run is clearly shaping market expectations.
Investors are now pricing in a more turbulent economic outlook, driven by protectionist policy risk.
