Dow set to slide on new tariffs and global economic troubles

The Dow and the broader stock market are headed lower on Tuesday. Investors’ sentiment soured after US tariffs on Chinese imports came into effect over the weekend. Fresh concerns about Brexit are also keeping global markets lower.

Futures for the Dow were 0.7%, or 190 points, lower, while those for the S&P 500 and Nasdaq Composite are down 0.5% and 0.6%.

European bourses were lower across the board as the future of Brexit is growing more uncertain and a general election could be looming. It would be the third UK election in four years.

On Sunday, the United States imposed a 15% tariff on some $110 billion worth of Chinese imports, while Beijing retaliated with 5% to 10% levies on about $75 billion of American imports.

China meanwhile filed a complaint against the United States with the World Trade Organization, according to multiple news reports.

This latest round of US tariffs also hit Chinese-made consumer products, including apparel and electronics. The United States delayed he implementation of about half of these consumer goods tariffs until December 15, aiming not to disrupt holiday shopping too much.

One way or another, American consumers’ worries about the trade war are beginning to crop up in economic data and will be a closely watching part of the data going forward.

On Tuesday’s economic calendar is the manufacturing purchasing managers’ index, which is expected to slip below 50, which is the key level separating a sector’s expansion from a contraction.

The more important ISM manufacturing index is due at 10 am ET, and expected to come in slightly below the prior month’s level.

US manufacturing has been hurting because of the trade war and a global economic slowdown. So far, however, the US consumer has kept the economy roaring.