Market Jitters: Dow Futures Dive After Trump Announces 30% Tariffs on EU, Mexico
Market Jitters: Dow Futures Dive After Trump Announces 30% Tariffs on EU, Mexico
U.S. equity futures experienced a sharp decline on Sunday evening, signaling a nervous start to the week for Wall Street as investors grapple with renewed tariff threats. Futures for the Dow Jones Industrial Average dropped 183 points (0.4%), while S&P 500 futures fell 0.4% and Nasdaq 100 futures slid 0.5%.
The downturn follows President Donald Trump’s declaration on Saturday that the U.S. will impose a substantial 30% tariff on goods from the European Union and Mexico, effective August 1. Both EU and Mexican leaders have indicated intentions to continue discussions with the Trump administration throughout July, aiming to negotiate a lower tariff rate.
This announcement also precedes crucial inflation readings expected this week, which are anticipated to shed more light on the economic impact of existing Trump-era tariffs. “Inflation is here with tariffs. It’s just a question of who eats it,” commented Peter Boockvar, chief investment officer at Bleakley Financial Group, on CNBC’s “Fast Money” last Friday. “Those companies that have pricing power means that consumers are going to eat it. Those companies that don’t have pricing power means that companies are going to eat it via a cut in their profit margin.”
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