U.S. Markets Fall As Trump Threatens 30% Tariffs On Mexico And Europe

U.S. stocks continue to decline after U.S. President Donald Trump threatened 30% tariffs on Mexico and the European Union (EU).

The three leading U.S. indices, the Dow Jones Industrial Average, S&P 500, and Nasdaq, were each down about 0.35% in pre-market trading on July 14 after Trump’s latest tariff threat.

President Trump said that the U.S. plans to impose 30% tariffs on Europe and Mexico starting Aug. 1.

Leaders of the EU and Mexico indicated that they intend to keep talking with the Trump administration this month in an attempt to agree on a lower rate for import duties.

The announcement comes ahead of inflation data and second-quarter earnings season kicking off, which will give investors a better sense of how the Trump tariffs are impacting the economy.

The latest decline comes after a negative week for U.S. equities, although the major indices are still near record highs.

Earnings season begins in coming days as major banks such as JPMorgan Chase (JPM) and Bank of America (BAC) deliver their second quarter financial results.

Possibly also weighing on U.S. markets is the growing rift between the Trump administration and the U.S. Federal Reserve.

National Economic Council Director Kevin Hassett said in a recent interview that President Trump can fire Fed Chair Jerome Powell “if there’s cause.”

Trump officials are probing the costs of renovating the central bank’s main office in Washington, D.C., while the president has repeatedly criticized Powell for not lowering interest rates.

President Trump has alternated between threatening to fire Powell and saying he will let the Fed Chair finish out his current term that ends in 2026.