U.S. futures fell Thursday evening stateside after U.S. President Donald Trump announced tariffs on all Mexico imports.
Dow Jones Industrial Average futures dropped 220 points as of 8:19 p.m. ET Thursday, implying an opening decline of 200.88 points for the benchmark index on Friday. S&P 500 and Nasdaq futures also pointed to declines for the two indexes when they start trading on Friday.
Meanwhile, the closely-watched 10-year Treasury yield dropped to lows not seen since 2017, last trading at 2.1819%. The 10-year yield entered May trading above 2.5%.
The moves came after Trump announced in a tweet on Thursday night stateside that the U.S. will impose a 5% tariff on all Mexican imports from June 10, until "the Illegal Immigration problem is remedied."
The White House added in a statement that tariffs will be raised if the immigration issue persists, and will be set to increase even further if Mexico does not take "dramatic action" to reduce or eliminate the problem.
That development come amid increasing tensions between the U.S. and China after trade talks hit an impasse a few weeks ago, with both sides raising tariffs on each other's goods and the rhetoric seeing a recent escalation.
The biggest Chinese newspaper explicitly warned the U.S. on Wednesday that China would cut off rare earth minerals as a countermeasure in the escalated trade battle.
Chinese Vice Foreign Minister Zhang Hanhui then said Thursday that provoking trade disputes amounted to "naked economic terrorism. "
— CNBC's Joanna Tan contributed to this report.
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