Trump's Tariff Turmoil: Markets React to Escalating U.S.-Canada Trade Tensions

U.S. stock futures fell as President Trump announced a 35% tariff on Canadian imports, heightening trade tensions. Markets showed resilience despite uncertainties, as analysts noted investors' calm responses. Wall Street prepares for earnings season amidst expectations of economic data releases and potential Federal Reserve interest rate cuts.

U.S. stock index futures took a hit on Friday after President Donald Trump intensified his tariff campaign against Canada, adding new layers of uncertainty to Washington's trade policy approach.

Trump declared a 35% import levy on Canadian goods, effective next month, up from the current 25%, while proposing a 15% to 20% tariff for other nations. Markets exhibited resilience, investors showing an ability to weather the tariff storm with more poise than before.

As eyes turn to the upcoming earnings season, economic data and potential Federal Reserve rate cuts, Wall Street braced for further developments. In contrast, cryptocurrency stocks experienced gains with Bitcoin's rise, and Levi Strauss & Co reported strong forecasts, boosting its shares significantly.

(With inputs from agencies.)