Dow futures declined around 200 points, or 0.9%, on Thursday evening after President Donald Trump said the United States will impose a 5% tariff on all Mexican imports. S&P 500 futures fell 0.8% and Nasdaq futures were down 0.9%.
Stock futures indicated that those losses would extend to the United States. The Dow is poised to fall 230 points, or 0.9%, when markets open. The S&P 500 is tracking similar losses, while the Nasdaq could drop 1.1%.
Mexico is one of America’s biggest trading partners and many US companies — including Ford(F) and Walmart(WMT) — rely on the country as a central part of their supply chains. Walmart declined to comment Thursday.
The country is also a regional manufacturing hub for Japanese, South Korean and German automakers that assemble cars in Mexico and ship many of them to the United States.
