Futures Retreat as Trump Names New Tariff Date
Stock futures fell Monday after the U.S. said that tariffs are set to go into effect Aug. 1, not July 9.
Futures for the Dow Jones Industrials dropped off 26 points, or 0.1%, to 45,072.
Futures for the S&P 500 index slid 17.75 points, or 0.3%, to 6,306.50
Futures for the NASDAQ stepped back 94.25 points, or 0.4%, to 22,967.25.
U.S. markets were closed Friday for the 4th of July holiday.
In an interview with reporters Sunday, President Donald Trump and Commerce Secretary Howard Lutnick were asked to clarify when tariffs are set to go into effect. In response, Lutnick said, “Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now.” Trump nodded in approval.
Earlier in the day, Treasury Secretary Scott Bessent said in an interview on CNN’s “State of the Union” that tariffs will return to April 2 levels on Aug. 1 if there is no progress on signing a deal with the U.S.
Investors had been expecting tariff rates to go into effect this week. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most U.S. trading partners was set to end Tuesday.
Adding to trade worries, Trump also threatened an additional 10% tariff on countries that align with the “Anti-American policies of BRICS,” which refers to emerging market countries including Brazil, Russia, India and China. Trump did not elaborate on any specific policy of BRICS.
The announcement came as the group met in Rio de Janeiro, Brazil. In recent years, the group has sought to move away from its dependence on the U.S. dollar.
Tesla shares were down more than 6% after CEO Elon Musk said he is launching his own political party.
The party would be called the “America Party” and could focus on “on just two or three Senate seats and eight to 10 House districts.”
In Japan, the Nikkei 225 index retreated 0.6% Monday, while in Hong Kong, the Hang Seng handed back 0.1%
Oil prices did not move from their current perch of $67.00 U.S. a barrel.
Gold prices docked $33.20 to $3,309.70 U.S. an ounce.
