By Alexandra Gibbs, CNBC–

U.S. stock index futures slumped ahead of Monday’s open, as markets across the globe saw red on the back of ramping trade tensions.

Around 5:10 a.m. ET, Dow futures tumbled 126 points, indicating a negative open of 115.41 points. The Nasdaq and S&P 500 futures indicated sharp losses at the start to their respective trading sessions.

Fears surrounding a potential trade war between the U.S. and other major economies continue to plague market sentiment around the world.

The U.S. administration is reportedly looking into drafting a bill that would allow the White House to unilaterally increase trade tariffs without congressional consent, according to an Axios report published Sunday. If legislation moves ahead, it could mean that the U.S. would be acting outside of the World Trade Organization’s policies and rules.

Elsewhere, a report by the Financial Times suggested that the U.S. could receive a new round of tariffs worth as much as $300 billion, if Washington moves ahead with levies on automakers in the European Union.

While trade and political tensions are likely to top the agenda Monday, data scheduled for publication includes the manufacturing purchasing managers’ index (PMI) at 9:45 a.m. ET, followed by Manufacturing ISM report on business and construction spending at 10 a.m. ET. Herman Miller is scheduled to publish its earnings after the bell.

Oil prices slipped into negative territory, on the back of an increase in supply from Russia and Saudi Arabia.

On Saturday, President Donald Trump tweeted that he’d asked King Salman of Saudi Arabia for the country to pump more oil “maybe up to 2,000,000 barrels, to make up the difference… Prices too high! He has agreed!” The White House, however, have since walked back on the president’s comments.