US stock futures lower after Trump announces 30% tariff on Mexico, EU

Published 11 hours ago• 3 minute read

U.S. stocks quietly opened mostly lower after President Donald Trump further escalated trade tensions.

Over the weekend, Trump announced a 30% tariff on goods from the European Union and Mexico, starting Aug. 1. Mexico and EU leaders said they would continue to negotiate this month before that date.

The EU is now preparing to step up its engagement with other countries hit by Trump’s tariffs, according to people familiar with the matter, according to Bloomberg. Other reports say the EU is considering retaliatory tariffs against the U.S. if no deal is reached and U.S. levies are enacted.

Still, the market reaction has been fairly muted, not even close to the enormous swings in April when Trump first announced his tariff plan. "We have stopped speculating about the whether or not there is a longer-term strategy," said Carsten Brzeski, global head of macro at Dutch bank ING. "We only know that financial markets seem to have grown numb, while at the same time the tariff threat is still for real."

At 9:31 a.m. ET, the blue-chip Dow slipped 0.26%, or 116.9 points, to 44,254.61; the broad S&P 500 edged down 0.14%, or 8.61 points, to 6,251.14; and the tech-heavy Nasdaq wavered between red and green, but was last up 0.02%, or 3.01 points, to 20,588.54. The benchmark 10-year yield dipped to 4.419%.

However, Bitcoin continues to rally to record highs. The digital unit jumped above $121,000 ahead of the start of "Crypto Week" on July 14. Lawmakers will debate three key bills aimed at providing clear regulatory frameworks for digital assets, stablecoins, and blockchain technologies. Bitcoin was last up 2.29% at $121,567.50.

Later this week, investors will get aother round of inflation data to comb through for signs Trump's tariffs are affecting consumer prices and the economy. So far, the inflation impact of the tariffs has been muted.

Investors will also have to contend with increasing pressure on Federal Reserve Chairman Jerome Powell.

On Sunday, National Economic Council Director Kevin Hassett said Trump can fire Fed Chair Jerome Powell “if there’s cause.”

Office of Management and Budget Director Russell Vought has said Powell “has grossly mismanaged the Fed” and suggested he had misled Congress about a pricey and “ostentatious” renovation of the central bank’s headquarters. He is vowing a probe into this.

Trump said over the weekend if Powell stepped down, that would be a “good thing.”