07:36 AM EDT, 04/09/2025 (MT Newswires) -- The main US stock measures were trending downwards in Wednesday's premarket activity as President Donald Trump's tariffs on key trading partners came into effect, while China increased its reciprocal tariffs on US goods.

The S&P 500 declined 0.7%, the Dow Jones Industrial Average decreased 1% and the Nasdaq was off 0.2% before the opening bell. The indexes closed the previous trading session in the red.

The Trump administration's sweeping new tariffs went into effect at 12:01 am ET Wednesday, with imports from China subject to a 104% rate amid an escalating standoff between the two countries. China on Wednesday increased its reciprocal tariffs on US goods to 84% from 34% after the country's foreign ministry said Beijing will take "resolute and forceful" countermeasures to protect its interests. Canada reconfirmed plans to implement 25% retaliatory tariffs on US-made vehicles, effective Wednesday.

The revenue generated from tariffs is expected to help narrow the US budget deficit this year, but the impact on economic growth and additional tax cuts are expected to limit the size of any lasting fiscal benefit, Fitch Ratings said Tuesday.

Shares of Apple ( AAPL ) were down 1.9% pre-bell after falling nearly 5% as of the close of Tuesday's trading session. Chinese e-commerce giant Alibaba Group's ( BABA ) US-listed stock gained 2.9%, while Tesla (TSLA) was slightly in the red.

US Treasury yields moved higher in premarket action, with the two-year rate rising 5.8 basis points to 3.79%, while the 10-year rate jumped 13 basis points to 4.39%.

The Federal Reserve is scheduled to post minutes of its last policy session at 2 pm, which will be assessed for clues on the central bank's monetary policy. Morgan Stanley expects the Fed to keep its monetary policy on hold throughout this year and resume cutting interest rates in March 2026, as it monitors the impact of tariffs on inflation and economic activity, the investment bank said in a Tuesday note.

Also on Wednesday's economic calendar is the weekly mortgage applications bulletin at 7 am. The consumer price index report for March is out Thursday followed by the producer price index for the same month on Friday.

Richmond Fed President Thomas Barkin is scheduled to speak at 12:30 pm.

On the earnings front, Delta Air Lines ( DAL ) and Simply Good Foods ( SMPL ) are among the companies reporting their latest results before the bell. Beer and wine company Constellation Brands ( STZ ) is slated to report its quarterly financial statement after the markets close.

West Texas Intermediate crude oil tumbled 4.1% to $57.13, its lowest price since February 2021, amid demand uncertainties caused by the escalating trade war, according to media reports. The weekly EIA domestic petroleum inventories report is due today at 10:30 am.

Bitcoin traded up 0.9% at $77,385. Gold advanced 2.4% to $3,061 an ounce.