The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a sharply lower open on Friday, with stocks likely to extend the nosedive seen in the previous session.

Ongoing concerns about a global trade war are likely to weigh on Wall Street after China announced retaliatory tariff on U.S. goods in reaction to President Donald Trump’s new levies.

China’s finance ministry announced a 34 percent tariff will be imposed on all imported goods originating from the U.S. beginning on April 10.

The new tariff matches the “reciprocal tariff” Trump plans to impose on China, although the country will face a 54 percent effective rate when the new levies are combined with existing duties.

The ministry called Trump’s tariff plan a “typical unilateral bullying practice” that is “inconsistent with international trade rules.”

“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,” the ministry said, according to a Google translation.

Canada and the European Union are also preparing countermeasures, leading to concerns about a trade war that could fuel inflation and damage the global economy.

The futures remained sharply lower even after a closely watched Labor Department report showed employment in the U.S. surged by much more than expected in the month of March.

Stocks plummeted during trading on Thursday amid concerns about a global trade war following Trump’s tariff announcement. The sell-off dragged the Nasdaq and the S&P 500 down to their lowest levels since last August, while the Dow slumped to a nearly seven-month closing low.

The major averages saw further downside going into the close, ending the session near their worst levels of the day. The Nasdaq plummeted 1,050.44 points or 6.0 percent to 16,550.61, the S&P 500 plunged 274.45 points or 4.8 percent to 5,396.52 and the Dow tumbled 1,696.39 points or 4.0 percent to 40,545.93.

The nosedive on Wall Street came after Trump delivered a highly anticipated speech on Wednesday outlining his plan to impose sweeping tariffs on U.S. trade partners.

Trump’s “reciprocal tariff” plan calls for a baseline 10 percent tariff to be imposed on all U.S. imports except those compliant with the United States-Mexico-Canada Agreement.

Certain countries deemed the “worst offenders” will face much higher tariffs, with countries like Cambodia, Laos, Madagascar and Vietnam set to be charged nearly 50 percent.

“The roller coaster ride continues as the initial leaks were positive (only 10% baseline tariffs), but then the details were released and they were far worse than expected (24-49% outside of the EU and UK),” said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

He added, “The silver lining for investors could be that this is only a starting point for negotiations with other countries and ultimately tariff rates will come down across the board – but for now traders are shooting first and asking questions later.”

Possibly adding to the negative sentiment, the Institute for Supply Management released a report showing U.S. service sector growth slowed by more than anticipated in the month of March.

The ISM said its services PMI fell to 50.8 in March after inching up to 53.5 in February. While a reading above 50 still indicates growth, economists had expected the index to show a more modest decrease to 53.0.

Computer hardware stocks turned in some of the market’s worst performances on the day, with the NYSE Arca Computer Hardware Index plummeting by 13.6 percent to its lowest closing level in over a year.

Substantial weakness was also visible among semiconductor stocks, as reflected by the 9.9 percent nosedive by the Philadelphia Semiconductor Index. The index also plunged to a one-year closing low.

Banking stocks also showed a significant move to the downside, dragging the KBW Bank Index down by 9.9 percent to its lowest intraday level in almost seven months.

Networking, oil producer and transportation stocks also saw considerable weakness amid a broad based sell-off on Wall Street.

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