Dow futures tumbled 200 points, or 0.9 percent, on Thursday night after President Trump announced the U.S. will impose a 5 percent tariff on Mexican imports beginning June 10.
S&P 500 futures dropped 0.8 percent, while Nasdaq futures plummeted 0.9 percent and the Mexican peso fell 2 percent against the U.S. dollar, CNN reports. Mexico is among the United States' biggest trading partners, and the U.S. Chamber of Commerce estimates at least six million jobs are tied to trade with Mexico.
Trump said the tariffs will be in place until "such time as illegal migrants coming through Mexico, and into our Country, STOP." The White House later released a statement saying the tariffs would increase by 5 percent in July, August, September, and October. After Oct. 1, the White House said, "tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory."