US STOCKS-Futures tumble as Trump's tariffs stoke trade war risks

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Feb 3 (Reuters) - U.S. stock index futures 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 EWW.P lost 2.4% in premarket trading, while an ETF tracking Canada EWC.P slipped 2.8% in light volumes.

At 04:11 a.m. ET, Dow E-minis 1YMcv1 were down 588 points, or 1.32%, S&P 500 E-minis EScv1 were down 94.25 points, or 1.55%, and Nasdaq 100 E-minis NQcv1 were down 402.25 points, or 1.86%.

Futures linked to the economically-sensitive Russell 2000 smallcaps index RTYcv1 slumped more than 2%.

Most chip stocks slumped, with industry bellwether Nvidia NVDA.O sliding 3%, while Broadcom AVGO.O lost 3.4%.

Most megacap growth stocks also slid, with Apple AAPL.O and Microsoft MSFT.O down close to 2% each.

Legacy automakers Ford F.N dropped 4.1%, while General Motors GM.N shed 6.7%.

Trump also warned that tariffs on Europe will "definitely happen", but did not offer any clarity over his plans. The pan-European STOXX 600 .STOXX was last down 1.4%. .EU

Goldman Sachs noted that if said tariffs are sustained, it could reduce their S&P 500 .SPX earnings per share $(EPS)$ growth forecast by roughly 2%-3%, while Morgan Stanley also expects US equities to come under pressure.

Treasury yields eased a touch as investors moved into safer assets such as bonds, while the dollar index =USD was last flat.

Meanwhile, the quarterly earnings remain in full swing, with Google-parent Alphabet GOOGL.O, chipmaker AMD AMD.O, payments platform PayPal PYPL.O and drugmaker Eli Lilly LLY.N some of the prominent companies reporting earnings this week.

Of the 178 companies in the S&P 500 that have reported earnings so far, more than 75% reported earnings that 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 BTC= prices tumbled in a global risk-off move.

Exchange operator Coinbase COIN.O dropped 5.7%, while the largest corporate holder of bitcoin, MicroStrategy MSTR.O, slid 5.2%.

The ProShares Bitcoin ETF BITO.P lost 5.6%.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli)

((Shashwat.Chauhan@thomsonreuters.com;))