(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

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Automakers, chip stocks fall after Trump announces trade

tariffs

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Triumph Group ( TGI ) jumps after co to go private in $3 bln deal

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Wall Street's "fear gauge" at one-week high

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Futures down: Dow 1.37%, S&P 500 1.61%, Nasdaq 1.87%

(Updates numbers throughout)

By Shashwat Chauhan

Feb 3 (Reuters) - Futures for Wall Street's main indexes

tumbled on Monday as fears of a full-blown trade war and its

impact on the global economy jolted markets around the world

after President Donald Trump levied steep tariffs on Mexico,

Canada and China.

Over the weekend, Trump imposed hefty new tariffs of 25% on

imports from Mexico and Canada, and 10% on China - which he said

may cause "short-term" pain for Americans.

"Breaking global trade may seem like the thing to do to

resurrect the US industrial economy, a noble ambition, but,

break trade and you disrupt global capital flows necessary to

finance the US budget deficit," an analyst at GlobalData.TS

Lombard wrote in a note.

Trump said he would talk on Monday with the leaders of

Canada and Mexico, which have announced retaliatory tariffs, but

downplayed expectations that they would change his mind.

The iShares MSCI Mexico ETF lost 3.5% in premarket

trading, while an ETF tracking Canada slipped 2.2%.

At 07:12 a.m. ET, Dow E-minis were down 612 points,

or 1.37%, S&P 500 E-minis were down 97.5 points, or

1.61% and Nasdaq 100 E-minis were down 403.75 points, or

1.87%.

Futures for the economically-sensitive Russell 2000

smallcaps index slumped more than 2%.

Most chip stocks slumped, with industry bellwether Nvidia ( NVDA )

sliding 3.6%, while other growth stocks lost ground,

with Apple ( AAPL ) and Microsoft ( MSFT ) down more than 1%

each.

Legacy automakers Ford dropped 4%, while General

Motors ( GM ) shed 7.1%. EV maker Tesla lost 3%.

The Cboe Volatility Index, known as Wall Street's

"fear gauge", jumped to its highest level in a week.

Trump also warned that tariffs on Europe will "definitely

happen", but did not offer any clarity over his plans. The

pan-European STOXX 600 was last down 1.3%.

Goldman Sachs estimates that every 5-percentage-point

increase in the tariff rate would lower the S&P 500's

earnings per share by roughly 1% to 2%.

The brokerage said the latest tariff announcements could

bring about a reduction in its forecasts for the S&P 500's

earnings by roughly 2% to 3%.

Meanwhile, the quarterly earnings remain in full swing, with

some prominent companies including Google-parent Alphabet

, chipmaker AMD, payments platform

PayPal ( PYPL ) and drugmaker Eli Lilly ( LLY ) reporting

results this week.

Of the 178 companies in the S&P 500 that have reported

earnings so far, more than 75% of them beat analyst estimates,

as per data compiled by LSEG.

Later in the day, a January manufacturing activity reading

is expected. The January non-farm payrolls report is also due

this week on Friday.

Among other movers, cryptocurrency and blockchain-related

stocks dropped as bitcoin prices tumbled in a global

risk-off move.

Exchange operator Coinbase and the largest

corporate holder of bitcoin, MicroStrategy ( MSTR ), tumbled

almost 6% each.

Triumph Group ( TGI ) jumped 34.1% after the aircraft parts

maker said investment firms Warburg Pincus and Berkshire

Partners have agreed to buy the company in a deal valued at

about $3 billion.