Market Shock: China's Tariff Escalation Hits U.S. Futures

U.S. stock index futures plummeted after China announced higher tariffs on U.S. goods, a countermeasure to U.S. President Donald Trump's tariffs. China's new tariffs increase to 84% from 34%, affecting U.S. financial markets significantly. Major indices, including Dow and Nasdaq, witnessed sharp declines early Wednesday.

U.S. stock index futures took a notable dive on Wednesday, responding to China's announcement of increased tariffs on American goods. The move was in retaliation to President Donald Trump's tariffs, which had recently been implemented.

China's finance ministry confirmed that tariffs on U.S. goods would rise sharply from 34% to 84% starting Thursday.

By 07:08 a.m. ET, key indices reflected the tension: Dow E-minis fell 709 points or 1.87%, while the S&P 500 E-minis decreased by 86.5 points, or 1.72%, and the Nasdaq 100 E-minis dropped 250.75 points, or 1.45%.

(With inputs from agencies.)