U.S. stock futures are tanking after the Trump administration imposed tariffs on goods from Mexico, Canada, and China that are due to take effect Tuesday.

Nasdaq futures are nearly 2% lower, while S&P 500 and Dow Jones Industrial Average futures are down about 1.5% on President Donald Trump's plan for tariffs on the three countries, which combined make up more than 40% of U.S. imports.

Trump on Saturday ordered tariffs of 25% on Mexico and Canada, and 10% on China, with Ottawa hitting back with retaliatory 25% tariffs. Trump also said that levies on the European Union (EU) "will definitely happen," according to Bloomberg, with the president citing the large trade deficit the U.S. has with the region.

Global Automaker Stocks Tumble

Shares of automakers, which assemble vehicles in Canada and Mexico and import parts from China, were tumbling across the globe. The "Big Three" U.S. automakers—General Motors (GM), Jeep parent Stellantis (STLA), and Ford Motor (F)—are slumping 7%, 5%, and 4%, respectively.

Shares of Japanese auto manufacturers, which also have supply chains in Canada and Mexico, also dropped. Toyota Motor's (TM) U.S.-listed shares are down 3% in premarket trading, while Honda Motor's (HMC) are down 6%. Nissan Motor shares closed nearly 6% lower in Tokyo trading.

"In the weeks ahead, tariffs are likely to represent an overhang on markets and contribute to volatility, at least until investors gain greater clarity on the path and destination of US trade policy," UBS Global Wealth Management Chief Investment Officer Mark Haefele said.