- US stock futures fell Sunday evening as Wall Street braced for the latest salvo in President Donald Trump’s trade war. The Wall Street Journal reported that advisers have considered a global tariff of up 20% on almost all countries, though reciprocal tariffs are still an option. That follows an earlier report that said Trump is eyeing more aggressive duties to transform the US economy.
Investors are buckling up for a potentially bumpy ride as a critical week for markets and the economy kicks off, with reports indicating President Donald Trump’s trade war could soon get even more intense.
Dow futures were down 170 points, or 0.41%, while S&P 500 futures fell 0.77% and Nasdaq futures sank 1.4%. That follows Friday’s selloff that saw the broad market index sink 2%.
The yield on the 10-year Treasury bond slipped 5.9% basis points to 4.196%.
Tariff news dominated the weekend and indicated more escalation is ahead. On Sunday, sources told the Wall Street Journal that Trump has pushed his advisers to get more aggressive on tariffs, including higher rates on a wider set of nations.
One option under consideration in recent days is a global tariff of up to 20% that hits nearly all US trading partners, reviving an idea Trump floated on the campaign trail.
A 20% rate would further up the ante. Fitch Ratings earlier estimated that if Trump carried out all his previously announced plans, the effective US tariff rate could hit 18% on average—the highest level in 90 years.
Reciprocal tariffs, where the US matches duties or trade barriers from other countries, are still an option too, according to the Journal, but one source that said Trump wants a “big and simple” policy.
That suggests the eventual tariff policy will be broader than Treasury Secretary Scott Bessent’s “dirty 15” plan to set tariffs on the 15% of countries that the administration considers the worst trading partners.
The White House didn’t immediately respond to a request for comment.
Similarly, the Washington Post reported on Saturday that Trump is considering a single universal tariff as part of an effort to fundamentally transform the US economy.
That means most imports would face the same rate no matter which country they are from, the report said, adding that Trump views a single duty as less likely to be watered down by exemptions.
Intense discussions are ongoing ahead of Wednesday, which Trump has billed as “Liberation Day,” when his next batch of tariffs will be unveiled.