Market update: Dow futures drop as Trump escalates global tariff campaign
U.S. stock futures tumbled Friday morning after President Donald Trump announced aggressive new tariffs, including a 35% duty on Canadian imports and plans for broader 15%–20% tariffs on other countries.
The moves come just a day after the S&P 500 hit a record high, News.Az reports, citing CNBC.
Market Snapshot:
- Dow Jones futures fell 238 points (–0.5%)
- S&P 500 futures declined 0.5%
- Nasdaq 100 futures dropped 0.4%
The sell-off follows Trump’s announcement blaming Canada for the flow of fentanyl into the U.S., warning of even higher tariffs if Ottawa retaliates. "If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment," he posted on Truth Social.
Trump also told NBC News that he’s preparing blanket tariffs of 15%–20% on all remaining trade partners, exceeding the 10% rate many investors had grown accustomed to.
Nvidia, which had fueled much of the recent rally with AI momentum, retreated in premarket trading. JPMorgan shares were also down 1%, leading bank declines.
Citi's Drew Pettit cautioned that the rally’s sustainability depends on strong macro data and rate cuts from the Fed. "Structurally, we’re not there yet," he said on CNBC.
According to Bloomberg, Vietnam was surprised by Trump’s July 2 announcement of a 20% tariff. Officials had expected a lower rate of 10–15% after what they believed was a finalized trade deal.
Investors are now eyeing next week’s Q2 earnings kickoff and key inflation data, both of which could further shake markets already reacting to the White House’s intensified trade posture.
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