Trade Tensions Impact U.S. Market Futures Amid Tariff Talks

U.S. stock index futures climbed on Tuesday as investors assessed the impact of new tariff proposals by President-elect Donald Trump. The tariffs target Canadian, Mexican, and Chinese imports, potentially affecting global trade. Despite market uncertainty, some analysts view the tariff threats as leverage in negotiations rather than finalized policies.

U.S. stock index futures rose slightly on Tuesday as investors weighed the potential effects of new tariffs suggested by President-elect Donald Trump on the local economy. The tariffs would target imports from Canada, Mexico, and China, potentially violating existing trade deals.

Automakers experienced notable losses in premarket trading due to highly integrated cross-border supply chains. Analysts caution these tariffs may escalate global trade tensions and hinder long-term economic growth. However, some see Trump's tariff proposals as mere negotiating tactics.

Bond yields rose after Treasury Secretary pick Scott Bessent's announcement, affecting equity markets. Investors pivoted to small-cap indices and awaited key economic indicators, including a consumer confidence survey and the personal consumption expenditure report.

(With inputs from agencies.)