Trump’s Tariff Threat Rattles Stock Futures

Overnight trading saw stock futures edge downward after **President Donald Trump** revealed new tariffs impacting 14 nations. Investors are also digesting the extension of the “reciprocal” tariff deadline to August 1, adding to market uncertainty.

Market Reaction

Dow Jones Industrial Average futures saw a decline of 99 points, a 0.22% drop. Similarly, S&P 500 futures experienced a 0.16% decrease, while Nasdaq 100 futures showed marginal losses.

New Tariffs Imposed

**President Trump**’s late Monday announcements identified 14 countries facing new tariffs starting August 1. The targeted nations include Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Laos, Malaysia, Myanmar, Serbia, South Africa, South Korea, Thailand, and Tunisia.

An executive order signed by **Trump** extended the “reciprocal” tariff deadline to August 1, a shift from the original Wednesday date. The decision, according to **Trump**, followed recommendations and data from senior officials.

Losing Session on Wall Street

Major averages closed in the red on Wall Street yesterday. The Dow plummeted by over 400 points, a 0.9% decrease. The S&P 500 experienced a 0.8% drop, and the Nasdaq Composite slid by 0.9%.

Broader Economic Impact

The recent market volatility highlights the sensitivity of investors to trade-related news. A report by the Congressional Budget Office this year estimated that tariffs imposed between 2018 and 2021 reduced U.S. real gross domestic product (GDP) by 0.5% (CBO, 2024).

Warning on BRICS Alignment

**President Trump** also threatened an additional 10% tariff on countries aligning with the “Anti-American policies” of the BRICS nations which include Brazil, Russia, India and China.

Expert Analysis

Despite the tariff announcements, some analysts remain optimistic about the stock market’s resilience. The approaching earnings season may provide positive momentum for the S&P 500.

“So, I think it’s just a little bit of selling as we got the highs, and kind of recalibrating before July earnings season,”

—Adam Parker, CEO of Trivariate Research

**Adam Parker**, CEO of Trivariate Research, commented on CNBC’s Closing Bell, suggesting that the market’s reaction is a temporary recalibration ahead of the earnings season.