Wall Street wobbles as Trump slaps 30% tariffs on EU, Mexico; markets brace for earnings, inflation jitters
TOI World Desk | TIMESOFINDIA.COM | Jul 14, 2025, 18:35 IST
( Image credit : IANS )
Highlight of the story: U.S. stock futures dipped following Trump's proposed 30% tariffs on EU and Mexico imports, sparking trade uncertainty. Losses eased slightly as negotiations were anticipated. Concerns over inflation and potential retaliation loom ahead of key economic data and earnings reports. Tensions between Trump and the Fed Chair further contribute to market volatility.
U.S. stock market futures slipped Monday morning following former President Donald Trump’s announcement of sweeping 30% tariffs on imports from the European Union and Mexico, set to take effect on August 1. The news rattled global trade expectations and sparked a wave of uncertainty among investors, though losses eased slightly by mid-morning as traders speculated the tariffs might be negotiated down before implementation.
At around 6:15 a.m. ET, Dow Jones Industrial Average futures were down approximately 140 to 162 points, or about 0.36%. S&P 500 futures declined around 21.5 points (–0.34%), and Nasdaq 100 futures slipped by roughly 83.5 points, or 0.36%. The move triggered broad concerns over rising costs for U.S. companies, potential retaliatory measures from trading partners, and the timing—coming just ahead of a packed earnings week and key inflation data releases.
The tariffs mark a fresh chapter in Trump’s long-standing use of trade pressure as a negotiation tactic, but markets remain on edge. European and Mexican officials have indicated willingness to continue discussions, leaving open the possibility that the tariffs could be scaled back. Analysts warn that the added trade friction could fuel inflation, which remains a top concern for investors as June’s Consumer Price Index (CPI) data is due Tuesday, followed by producer prices and retail sales reports later in the week.
Major ETFs reflected the cautious tone in early trading. The SPDR Dow Jones Industrial Average ETF was down around 0.65%, the SPDR S&P 500 ETF slipped 0.35%, and the Invesco QQQ Trust, which tracks tech-heavy Nasdaq-100 stocks, edged down 0.20%. Among individual movers, Boeing rose nearly 2% premarket following positive safety developments, while big tech names showed mixed performance—Apple fell slightly, while Tesla, Nvidia, and Amazon posted modest gains.
Adding to market uncertainty is the growing tension between Trump and Federal Reserve Chair Jerome Powell. Over the weekend, members of Trump’s economic team publicly criticized Powell, with suggestions that the Fed chief could be dismissed if “cause” is established. Trump himself said Powell’s resignation “would be a good thing,” raising fresh concerns about the central bank’s independence ahead of pivotal interest rate decisions.
Meanwhile, Bitcoin continued its record-setting streak, surging past $119,000, buoyed by optimism surrounding the upcoming "Crypto Week" in Washington, where lawmakers are expected to debate new regulations for digital assets. In another headline-making development, Tesla CEO Elon Musk revealed that shareholders would soon vote on whether the company should invest in his AI venture, xAI.
With major U.S. banks—including JPMorgan, Goldman Sachs, and Bank of America—set to report second-quarter results this week, investors will be watching closely for clues on the health of the economy, loan demand, and how companies are handling inflationary pressures. Despite a shaky start, some analysts believe strong earnings could provide a stabilizing force amid trade and policy uncertainties.
As August 1 approaches, markets will be watching for signs of de-escalation in trade talks with the EU and Mexico, the trajectory of inflation data, and any new developments in the Trump–Powell saga. Until then, volatility is expected to remain elevated.
At around 6:15 a.m. ET, Dow Jones Industrial Average futures were down approximately 140 to 162 points, or about 0.36%. S&P 500 futures declined around 21.5 points (–0.34%), and Nasdaq 100 futures slipped by roughly 83.5 points, or 0.36%. The move triggered broad concerns over rising costs for U.S. companies, potential retaliatory measures from trading partners, and the timing—coming just ahead of a packed earnings week and key inflation data releases.
The tariffs mark a fresh chapter in Trump’s long-standing use of trade pressure as a negotiation tactic, but markets remain on edge. European and Mexican officials have indicated willingness to continue discussions, leaving open the possibility that the tariffs could be scaled back. Analysts warn that the added trade friction could fuel inflation, which remains a top concern for investors as June’s Consumer Price Index (CPI) data is due Tuesday, followed by producer prices and retail sales reports later in the week.
Major ETFs reflected the cautious tone in early trading. The SPDR Dow Jones Industrial Average ETF was down around 0.65%, the SPDR S&P 500 ETF slipped 0.35%, and the Invesco QQQ Trust, which tracks tech-heavy Nasdaq-100 stocks, edged down 0.20%. Among individual movers, Boeing rose nearly 2% premarket following positive safety developments, while big tech names showed mixed performance—Apple fell slightly, while Tesla, Nvidia, and Amazon posted modest gains.
Adding to market uncertainty is the growing tension between Trump and Federal Reserve Chair Jerome Powell. Over the weekend, members of Trump’s economic team publicly criticized Powell, with suggestions that the Fed chief could be dismissed if “cause” is established. Trump himself said Powell’s resignation “would be a good thing,” raising fresh concerns about the central bank’s independence ahead of pivotal interest rate decisions.
Meanwhile, Bitcoin continued its record-setting streak, surging past $119,000, buoyed by optimism surrounding the upcoming "Crypto Week" in Washington, where lawmakers are expected to debate new regulations for digital assets. In another headline-making development, Tesla CEO Elon Musk revealed that shareholders would soon vote on whether the company should invest in his AI venture, xAI.
With major U.S. banks—including JPMorgan, Goldman Sachs, and Bank of America—set to report second-quarter results this week, investors will be watching closely for clues on the health of the economy, loan demand, and how companies are handling inflationary pressures. Despite a shaky start, some analysts believe strong earnings could provide a stabilizing force amid trade and policy uncertainties.
As August 1 approaches, markets will be watching for signs of de-escalation in trade talks with the EU and Mexico, the trajectory of inflation data, and any new developments in the Trump–Powell saga. Until then, volatility is expected to remain elevated.