On Wednesday, U.S. stock futures experienced volatility as investors digested news that President-elect Donald Trump is contemplating a national economic emergency declaration to support proposed tariff measures.
Both the S&P 500 and the tech-heavy Nasdaq 100 futures were down slightly by less than 0.1%, while the Dow Jones Industrial Average futures recovered from initial pre-market declines.
In the bond market, the yield on the 10-year Treasury surged, reaching as high as 4.72%, maintaining its proximity to an eight-month peak.
President-elect Donald Trump is contemplating the declaration of a national economic emergency to back a wide-ranging tariff initiative targeting both allies and rivals, as reported by CNN on Wednesday, citing sources familiar with the matter.
The prospective declaration would enable Trump to activate the International Economic Emergency Powers Act, allowing presidential control over imports under such a national emergency scenario.
An insider revealed to CNN that the idea of declaring a national emergency has indeed been floated, underscoring Trump’s readiness to explore all available options. The Trump transition team remained silent in response to comment requests.
Scheduled to assume office on January 20, Trump has expressed plans to enforce a 10% tariff on all global imports to the U.S., and to aggressively target Chinese goods with a 60% levy. Furthermore, he has threatened to introduce a 25% tariff on Canadian and Mexican imports the moment he takes office.
