Stock futures dropped to kick off a new trading month after President Donald Trump hit several key U.S. trading partners with tariffs, raising fears that a full-blown trade war would disrupt global supply chains, reignite inflation and slow the economy.

Market Snapshot

At 8:40 a.m. ET, Futures tied to the Dow Jones Industrial Average fell 619 points, or 1.4%. S&P 500 futures dropped 1.6%, while Nasdaq-100 futures lost 1.8%.

Pre-Market Movers

Stocks moving on tariffs — U.S. stocks reacted to the new 25% tariffs President Donald Trump levied on Saturday on goods from Canada and Mexico, and 10% on China, effective at midnight Monday. Stocks suffering the most included automakers and suppliers, consumer goods makers, clothing companies, steelmakers, railroads, transportation providers, nuclear stocks on Canadian uranium exposure, restraurant chains on higher food costs, homebuilders and solar stocks.

• General Motors — -6.7%

• Ford — -3.7%

• NVIDIA — -4%

• Tesla Motors — -4%

• Coinbase Global, Inc. — -7%

• Palantir Technologies Inc. — -2%

• Constellation — -4.7%

• Chipotle Mexican Grill — -2.6%

• Nike — -2.3%

• Lululemon Athletica — -3%

• Apple — -2%

• Broadcom — -3.7%

• PDD Holdings Inc — -6%

Tyson — The maker of Jimmy Dean sausage rose nearly 5% after fiscal first quarter results topped expectations. Tyson reported earnings of $1.14 per share, above the 90 cents per share estimated by analysts, according to FactSet. Sales rose about 2.3% year over year, led by growth in the beef category.

PVH Corp — Shares of the Calvin Klein and Tommy Bahama parent slipped 3%. Wells Fargo downgraded the apparel maker to equal weight from overweight Monday, saying it feels like a value trap due to mounting issues.

Market News

Musk Calls USAID 'Beyond Repair' as He Moves to Shut Down Aid Agency

Elon Musk, CEO of Tesla Motors and SpaceX (SPACE) and head of the new Department of Government Efficiency (DOGE) in the Trump administration, has said he is moving to shut down the U.S. Agency For International Development (USAID).

Musk said in a podcast that also featured Republicans Vivek Ramaswamy and Joni Ernst that the federal aid agency, the largest in the world, was “beyond repair” and should be dismantled.

The DOGE has already made moves in recent days to cut down on the USAID. This included removing dozens of agency staff, including two top officials who tried to stop DOGE officials from accessing parts of the building, according to a Reuters report on Monday.

Canada Should Slap Tesla with 100% Tariffs in Response to Trump, Says Chrystia Freeland

Former Canadian finance minister Chrystia Freeland said on Saturday Ottawa should retaliate against U.S. tariffs by imposing 100% tariffs on Tesla Motors.

U.S. President Donald Trump on Saturday imposed 25% tariffs on most imports from Canada and Mexico, effective Tuesday, due to "the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl."

Canadian Prime Minister Justin Trudeau responded by announcing 25% tariffs on $155 billion in U.S. imports, including levies on beer, wine, bourbon, fruits and fruit juices including orange juice, vegetables, perfumes, clothing and shoes.

Goldman Sachs Flags up to 3% Hit to Its S&P 500 Earnings Forecasts from Trump's Tariffs

Goldman Sachs economists estimate that if the latest trade tariffs announced by U.S. President Donald Trump after assuming office in his second term are sustained, they could take a significant chunk out of Corporate America's bottom line.

Trump imposed hefty new tariffs of 25% over the weekend on imports from Mexico and Canada and 10% against China, saying this could cause "short-term" pain for Americans.