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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 1.34%, S&P 500 1.56%, Nasdaq 1.75%

(Updates prices before markets open)

By Shashwat Chauhan

Feb 3 (Reuters) - Wall Street was set to drop at the

open 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.

"The uncertainty at this stage is tremendous - not only of

how these eventual negotiations will play out, but worries about

how this is only the tip of the iceberg and more tariffs are on

the horizon," said Yung-Yu Ma, chief investment officer at BMO

Wealth Management, in a mailed comment.

"It's likely that the initial tariffs on Canada and Mexico

are a negotiating template for what is to come."

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 3.6% in premarket

trading, while an ETF tracking Canada slipped 2.2%.

At 08:10 a.m. ET, Dow E-minis were down 599 points,

or 1.34%, S&P 500 E-minis were down 94.75 points, or

1.56%, and Nasdaq 100 E-minis were down 377.5 points, or

1.75%.

Futures for the economically-sensitive Russell 2000

smallcaps index slumped more than 2%.

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

sliding 4%, while growth stocks Apple ( AAPL ) fell

almost 2% and Microsoft ( MSFT ) slipped more than 1%.

Legacy automakers - who had been roiled by the impending

tariffs worries - dropped sharply. Ford fell 4.2%, while

General Motors ( GM ) shed 7.3%.

The Cboe Volatility Index, known as Wall Street's

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

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, and drugmaker Eli Lilly ( LLY )

reporting results this week.

On Monday, Tyson Foods ( TSN ) gained 4% after the meat

packer raised its annual sales forecast, while IDEXX

Laboratories ( IDXX ) added 6.9% after the animal diagnostics

maker beat fourth-quarter profit and revenue estimates.

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

about 7% each.

Triumph Group ( TGI ) jumped 34.4% 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.