• US stock futures fell Sunday evening as Wall Street braced for the latest salvo in President Donald Trump’s trade war. The Wall Street Journal reported that advisers have considered a global tariff of up 20% on almost all countries, though reciprocal tariffs are still an option. That follows an earlier report that said Trump is eyeing more aggressive duties to transform the US economy.

Investors are buckling up for a potentially bumpy ride as a critical week for markets and the economy kicks off, with reports indicating President Donald Trump’s trade war could soon get even more intense.

Dow futures were down more than 180 points, or 0.43%, while S&P 500 futures fell 0.5% and Nasdaq futures dropped 0.7%. That follows Friday’s selloff that saw the broad market index sink 2%.

Tariff news dominated the weekend and indicated more escalation is ahead. On Sunday, sources told the Wall Street Journal that Trump has pushed his advisers to get more aggressive on tariffs, including higher rates on a wider set of nations.

One option under consideration in recent days is a global tariff of up to 20% that hits nearly all US trading partners, reviving an idea Trump floated on the campaign trail.

A 20% rate would further up the ante. Fitch Ratings earlier estimated that if Trump carried out all his previously announced plans, the effective US tariff rate could hit 18% on average—the highest level in 90 years. 

Reciprocal tariffs, where the US matches duties or trade barriers from other countries, are still an option too, according to the Journal, but one source that said Trump wants a “big and simple” policy.

That suggests the eventual tariff policy will be broader than Treasury Secretary Scott Bessent’s “dirty 15” plan to set tariffs on the 15% of countries that the administration considers the worst trading partners.

The White House didn’t immediately respond to a request for comment.

Similarly, the Washington Post reported on Saturday that Trump is considering a single universal tariff as part of an effort to fundamentally transform the US economy.

That means most imports would face the same rate no matter which country they are from, the report said, adding that Trump views a single duty as less likely to be watered down by exemptions.

Intense discussions are ongoing ahead of Wednesday, which Trump has billed as “Liberation Day,” when his next batch of tariffs will be unveiled.

Trump has already slapped tariffs on China, Canada, Mexico, steel, aluminum and autos, while threatening duties on pharmaceuticals, chips, lumber and the European Union. 

Last week, he suggested he would show some “flexibility” on reciprocal tariffs, and earlier reports said those would be more targeted, raising hopes on Wall Street that their impact would be less severe.

But after stocks rallied, his announcement of auto tariffs on Wednesday contributed to another selloff, which was also fueled by signs that tariffs were worsening inflation as well as consumers’ expectations of future inflation.

Also on Saturday, Trump stood by his auto tariffs, telling NBC News that they are permanent and that he doesn’t care of they cause carmakers to hike prices.

“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” he said. “I couldn’t care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty.”

Trump later said if prices on foreign cars go up, then consumers will buy American cars.

Meanwhile, several big reports are due this week that could reveal how much stress the economy is feeling from Trump’s tariffs and steep federal job cuts.

On Tuesday, the Institute for Supply Management’s manufacturing activity index for March will come out, and the Labor Department will report February job openings and turnover.

On Wednesday, ADP will release private-sector payroll data for March. On Thursday, ISM will publish its monthly services-activity index, and the Labor Department will report weekly jobless claims.

On Friday, the Labor Department will issue its highly anticipated March jobs report, and Federal Reserve Chairman Jerome Powell is also scheduled to speak.

This story was originally featured on Fortune.com

German Chancellor Olaf Scholz on Sunday said the EU would respond firmly to tariffs announced by US President Donald Trump but stressed the bloc was also open to compromise.

“It is clear that we, as the European Union… will react clearly and decisively to the United States’ tariff policy,” Scholz said ahead of the opening of a trade fair in Hanover.

But the bloc was “always and at all times firmly prepared to work for compromise and cooperation”, he said.

“I say to the US: Europe’s goal remains cooperation. But if the US leaves us no choice, as with the tariffs on steel and aluminum, we will respond as a united European Union,” Scholz said.

Trump has announced sweeping tariffs on the United States’ allies and adversaries, including a 25-percent levy on auto imports starting next week.

A 25-percent US tariff on steel and aluminium from around the world came into effect in mid-March, with EU countermeasures set to begin in April.

As a major car manufacturer and exporter, Germany could be hit particularly hard by the auto tariffs and they were the subject of a visit to Washington by Finance Minister Joerg Kukies last week.

Germany has vowed a tough response to the tariffs, with a government spokesman insisting that “nothing is off the table”.

However, Italian Prime Minister Giorgia Meloni struck a more conciliatory tone on Saturday, calling for a “reasoned” approach to the escalating dispute.

EU chief Ursula von der Leyen also previously said she “deeply” regretted the US auto tariffs and the EU would “continue to seek negotiated solutions”.

Scholz on Sunday also insisted Canada was an independent country, responding to repeated comments by Trump that it should become the 51st US state.

“Canada is a proud, independent nation, Canada has friends all over the world and especially here in Germany and Europe,” he said at the Hanover trade fair.

Canada is a special guest at the event, which officially opens on Monday.

This story was originally featured on Fortune.com

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• While spending continued to increase in February, income grew even more, lifting the savings rate and indicating more caution among Americans. As growth slows down, some businesses are slashing their earnings forecasts amid consumer behavior concerns.

As confidence in the economic outlook fades, consumers are slowing their spending, and businesses are lowering their earnings forecasts.

Personal income jumped 0.8% last month, while spending increased 0.4%, contributing to a boost in the savings rate to 4.6%. That’s the highest since June 2024 and signals shoppers are turning more cautious.

“The February spending data confirm a slowdown in consumer activity in the first quarter of 2025,” Comerica Bank Chief Economist Bill Adams said in a note. 

Weak January spending could point to “one-off drags” from LA fires and harsh weather conditions, “but February’s anemic rebound points to a more persistent drag,” he added.

At the same time, consumer confidence is sinking, though sentiment doesn’t translate to actual spending.

The Conference Board’s expectations index in its latest consumer confidence survey fell to a 12-year low. The index plunged to 65.2, which is “well below the threshold of 80 that usually signals a recession ahead.” 

Additionally, the University of Michigan’s consumer sentiment survey released this week tumbled 11%.

“This month’s decline reflects a clear consensus across all demographic and political affiliations,” director of the survey Joanne Hsu said. “Republicans joined independents and Democrats in expressing worsening expectations since February for their personal finances, business conditions, unemployment, and inflation.”

As consumers grow weary of the economic headwinds, companies across industries are feeling the heat.

Some are dropping earnings forecasts while others remain on watch as tariffs, inflation, and consumer behavior impact their business. 

FedEx lowered its full-year forecast for adjusted profit to $18-$18.60 per share from $19 to $20, which is already down from a December forecast for $20-$22. 

During its quarterly earnings call, CFO John Dietrich attributed the lower outlook to “ongoing challenges in the global industrial economy, inflationary pressures, and the uncertainty surrounding global trade policies.”

Delta Air Lines also dropped its earnings projections for the first quarter, now expecting a profit between 30 cents and 50 cents per share, compared to previous appraisals between 70 cents and $1 in January.

According to a regulatory filing in March, Delta said its dimmer guidance was due to lower consumer and corporate confidence caused by increased economic uncertainty, hitting domestic demand.

“Consumers in a discretionary business do not like uncertainty,” Delta CEO Ed Bastian said on CNBC. “And while we do believe this will be a period of time that we pass through, it is also something that we need to understand and get to calmer waters.”

Additionally, American Airlines cut its growth forecasts in March after weaker demand in its domestic leisure segment and continued fallout from the plane crash over the Potomac River in January. The company expects first-quarter revenue to flatten out compared to a year ago, down from its prior forecast of a 3% to 5% increase. 

‘Tariff headwinds’

Elsewhere, other companies are providing disappointing guidance. Lululemon is seeing low consumer sentiment “manifesting itself” into slower foot traffic. The company projects first quarter revenue of $2.34 billion-$2.36 billion, lower than the Street’s expectations of $2.39 billion.

The company conducted a survey with Ipsos earlier this month regarding consumer sentiment, and found “consumers are spending less due to increased concerns about inflation and the economy.”

CFO Meghan Frank said during the earnings call that “tariff headwinds” could lead to slower sales in 2025. In fact, management sees revenue of $11.1 billion-$11.3 billion this year, up modestly from $10.59 billion in 2024 but also below analysts’ expectations for $11.31 billion.

Retail giant Walmart offered a full-year adjusted earnings forecast of $2.50-$2.60 per share, short of Wall Street’s $2.76 per share projection. 

CEO Doug McMillon had also warned about consumer confidence during a Feb. 27 talk at the Economic Club of Chicago. He noted that “budget-pressured” customers were reducing their spending and showing “stressed behaviors.”

American Eagle said it’s been impacted by the spending slowdown and estimates a $5 million-$10 million economic hit from tariffs on China for its fiscal year.

CEO Jay Schottenstein said a “fear of the unknown” is contributing to “less robust demand.”

“Not just tariffs, not just inflation, we see the government cutting people off,” he added. “They don’t know how that’s going to affect them.”

This story was originally featured on Fortune.com