Stock futures were sinking Monday after President Donald Trump imposed 25% tariffs on Canada and Mexico and 10% tariffs on China. Canadian energy products also will be hit with tariffs of 10%. Canada and Mexico said they would be retaliating with tariffs on goods from the U.S., while China vowed to take countermeasures.
These stocks were poised to make moves Monday:
Tesla Motors was down 2% in premarket trading. The electric-vehicle maker assembles all its vehicles for the U.S. market in the country but about 15% of the parts in a Model Y sold in the U.S. come from Mexico. Some come from Canada as well though how much is harder to determine. Fellow EV maker Rivian Automotive, Inc. was down 3.3%.
Shares of the traditional car manufacturers were falling in premarket trading. Millions of cars sold in the U.S. each year are assembled in Canada or Mexico. Tariffs mean higher costs for the companies and potential supply-chain issues. General Motors was down 6.2%, Ford declined 4%, and Jeep maker Stellantis NV slumped 6%.
Semiconductor companies with heavy exposure to China traded lower. NVIDIA fell 2.2%, Broadcom fell 2.2%, and Applied Materials slid 2.4%.
Constellation, the distributor of imported Mexican lager like Corona and Modelo Especial, was down 5.5% in premarket trading.
MicroStrategy, the largest corporate holder of Bitcoin, fell 5.2% and cryptocurrencies tumbled as the rapid escalation of Trump's trade war sparked a broad market selloff. Bitcoin has fallen over the past 24 hours by 4.1% to $95,287. It was trading above $105,000 on Friday.
Shares of domestic steel makers were rising. Steel Dynamics gained 5.8%, Nucor was up 4.6%, and cleveland-cliffs jumped 3.5%.
Earnings reports are expected Monday from Palantir Technologies Inc., NXP Semiconductors NV, Tyson, and Clorox.
Palantir Technologies Inc. fell 1.8% in premarket trading ahead of fourth-quarter earnings after the closing bell Monday. Shares of the software company on Friday set a closing record high of $82.49, up 1.6% on the day, and an all-time intraday high of $85.22.