US stock futures turn lower after China’s 84% tariffs take effect

Investing.com-- U.S. stock index futures turned negative in Asian trade on Thursday, reversing early gains as Chinese tariffs on U.S. goods came into effect, signaling another day of volatility, even as President Donald Trump announced a 90-day pause on most reciprocal tariffs.

S&P 500 Futures fell 0.8% to 5,448.50 points, while Nasdaq 100 Futures declined 1.4% to 19,014.00 points by 00:27 ET (04:27 GMT) on Thursday. Dow Jones Futures lost 0.3% to 40,722.0 points.

China had hiked tariffs on U.S. imports to 84%, from 34% on Wednesday in retaliation to increased Trump tariffs. These duties came into effect at 00:01 ET (04:01 GMT) on Thursday.

Markets cautious despite Trump’s 90-day tariff pause

President Donald Trump on Wednesday announced a 90-day pause on reciprocal tariffs for most U.S. trading partners, triggering a major rally on Wall Street. 

However, the pause did not extend to China. Instead, Trump raised tariffs on Chinese imports to 125% from 104%, raising trade tensions between the world’s two largest economies.

Investors were also cautious as analysts warned that markets have earlier witnessed Trump reversing his stance on tariffs, to reinstate them later.

"As such caution remains warranted - and remember President Trump does need revenue to fund his promised tax cuts. It would be a surprise if tonight’s announcement was really the return of ‘common sense’," ING analysts said in a note.

In regular trading on Wednesday, the S&P 500 soared 9.5% while the tech-heavy NASDAQ Composite surged 12.2%, and the Dow Jones Industrial Average closed nearly 8% higher.

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