Stock futures fell sharply on Monday morning as investors digested President Donald Trump’s latest comments on trade. On Friday, Trump announced plans to impose reciprocal tariffs on multiple countries, aiming to ensure that the U.S. is “treated evenly” in global commerce. His remarks sparked concerns over escalating trade tensions, sending financial markets into a downturn.

The news triggered immediate selling pressure, with the S&P 500 and Dow Jones Industrial Average both dropping 1% by the close of Friday’s session, while the Nasdaq tumbled 1.4%. Investors rushed to reassess their portfolios amid fears of potential retaliation from key trading partners, including the European Union, China, and Canada. The announcement also put pressure on multinational companies reliant on global supply chains, as the cost of imported goods could rise significantly under the proposed measures.

Trump’s trade strategy, which has prioritized protecting domestic industries, has previously led to a series of tariff battles with major economies. While the specifics of the latest tariffs remain unclear, analysts warn that increased trade barriers could disrupt global supply chains, weigh on corporate profits, and slow economic growth. The uncertainty has also added to existing market volatility driven by interest rate concerns and geopolitical risks.

Meanwhile, economic experts caution that further tariffs could prompt retaliatory measures from affected nations, potentially igniting a new round of trade disputes. European leaders have already signaled their readiness to respond swiftly if the U.S. imposes additional duties on EU exports. Similarly, China, which has been a frequent target of U.S. trade actions, could introduce countermeasures to protect its industries.

Investors are now closely monitoring the White House for more details on the scope and timing of the proposed tariffs. Markets remain on edge as traders assess the potential impact on corporate earnings, consumer prices, and overall economic growth. In the coming weeks, financial markets are likely to remain volatile as global trade policies take center stage once again.