Following the signing of an executive order by President Trump imposing a 25% tariff on car imports, US stock futures experienced a decline. Futures linked to the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) dropped by 0.3%, while futures connected to the Nasdaq Composite (NQ=F) decreased by 0.4%.

Trump declared the new tariffs from the Oval Office, emphasizing that they would stimulate unprecedented growth. The tariffs on foreign cars are scheduled to begin on April 2, the same day reciprocal tariffs are expected to take effect.

Despite Trump's positive outlook on the new tariffs, Wall Street appears skeptical about their potential benefits to the economy. Stock prices fell in anticipation of Trump's announcement and have remained subdued throughout the month as he has taken a hardline stance on trade war developments.

Amidst discussions of reciprocal duties between the EU and the US, minimal progress has been reported. The EU is bracing for the implementation of a double-digit tariff rate across the bloc following the unveiling of auto tariffs.

Investors await the release of February's Personal Consumption Expenditures Index on Friday, the Federal Reserve's preferred inflation measure. Concerns linger among investors that the US economy may face challenges if Trump's tariffs worsen inflation and hinder economic growth.

Despite Federal Reserve Chair Jerome Powell's reassurance that price increases resulting from the tariffs will likely be temporary, this stance has generated questions from both Fed observers and a central bank policymaker.