Stock Market Today: Dow Futures falls as Trump suggests as 70% tariff
US stock futures fell on Friday after President Donald Trump said he would start I’ll send you a letter Notify the country of the tariffs they face.
On Thursday, he told reporters that if additional letters arrive in “the coming days,” a “10 or 12” letter will appear on Friday. The price will be effective on August 1st.
“These values range from 60 or 70% tariffs to 10% and 20% tariffs,” Trump added.
The US market closed on the holiday on July 4th, but futures Dow The Jones Industrial Average fell 251 points or 0.56%. S&P 500 futures fell 0.64% Nasdaq Futures fell 0.68%.
US oil prices fell 0.75% per barrel to $66.50, while Brent crude lost 0.41% to $68.52. Gold rose 0.11% to $3,346.70 per ounce, with the US dollar down 0.16% against the euro and 0.30% against the yen.
The Trump administration has been negotiating with top trading partners ever since the president placed his “liberation day” tariffs on a 90-day suspension.
The grace period expires on Wednesday, July 9th. So far, limited trade contracts have been announced, and it was expected that negotiations with other countries would require more time.
So, as the Wednesday deadline approached, Wall Street was hoping Trump would return by Tuesday, announcing an extension of the tariff suspension. The so-called tachtrate It hints at his history, drawing back from his maximalist threat.
“While most countries expect to see a final concession to allow extensions, some of the “worst criminals” may be chosen for punitive treatment,” said analysts at Capital Economics, predicted earlier this week. “The market appears to be positioned for a rather benign result, and if that doesn’t happen, it would mean some short-term turbulence risk.”
It assumes that Trump will not risk repeated epic April sales caused by tariffs on his release date, and capital economics warned that such assumptions could be satisfied.
In fact, Trump has been saying for weeks that he prefers to set unilateral tariffs on each country rather than engage in negotiations with all countries. However, in the absence of letters, the market has rejected the risk that the tariff could surge again.
Still, Trump continues to beat drums about the letters. In an interview aired on Sunday, He was asked about the suspension of customs And the approaching deadline.
“I sent them a letter, a very fair letter, and replied, “Congratulations, I’ll allow you to trade in the United States. I’ll pay a 25% tariff or 20% or 40% or 50%,” Trump replied. “I want to do that.”
When asked if the suspension would not be extended, he said, “I don’t think I need to do that — I can, but it’s not a big deal.”
Trump further revealed his stance at the July 9 deadline, saying, “I’m going to send you a letter. That’s the end of the trade deal.”