Investing.com-- U.S. stock index futures fell on Sunday evening amid fears of an intensifying trade war after President Donald Trump slapped 30% tariffs on Mexico and the European Union, after similar levies against Canada.
Beyond trade, focus this week is squarely on consumer inflation data for June, due on Tuesday, for more cues on the inflationary impact of Trump’s tariffs.
S&P 500 Futures fell 0.4% to 6,274.0 points, while Nasdaq 100 Futures fell 0.4% to 22,859.0 points by 19:17 ET (23:17 GMT). Dow Jones Futures fell 0.4% to 44,417.0 points.
Trump imposes 30% tariffs on Mexico, EU
Trump over the weekend released more letters outlining trade tariffs on major U.S. trading partners, this time imposing a 30% levy on goods from Mexico and the European Union, respectively.
This came after Trump over the past week imposed tariffs on Japan, South Korea, Canada, and Brazil, as well as a 50% duty on all copper imports.
Trump’s tariffs will be effective from August 1, giving the targeted countries less than three weeks to reach a trade deal with Washington. He had postponed the deadline from July 9.
Speaking to reporters on Sunday, Trump said talks with South Korea and the EU were ongoing, with both countries seeking deals to avoid his steep tariffs.
Recent data showed U.S. customs duty collections surged to a record-high $113.3 billion gross in the first nine months of fiscal 2025 (the government’s fiscal year ends on September 30). Treasury Secretary Scott Bessent said this figure could reach $300 billion by December, representing a major source of fiscal revenue for the government.
But Trump’s tariffs are borne by U.S. importers, and have spurred concerns that businesses could pass down the costs to consumers, increasing inflation.
This has been a major point of concern for Wall Street, with U.S. stock benchmarks falling from record highs after Trump’s latest tariff salvo. The S&P 500 fell 0.3% to 6,259.75 points on Friday, while the NASDAQ Composite fell 0.2% to 5,259.75 points. The Dow Jones Industrial Average fell 0.6% to 44,371.51 points.
CPI inflation data due this week
Focus was also squarely on consumer price index inflation data for June, which is due on Tuesday.
Both the headline and core figures are expected to have picked up in the past month, although focus will be on whether this was due to Trump’s tariffs.
The Federal Reserve has also repeatedly warned of the potentially inflationary effects of Trump’s tariffs, and has cited uncertainty over the levies as a key motivator of not cutting interest rates in the near-term.
Trump has repeatedly called on the Fed to cut rates, warning of dire economic consequences. He has also launched personal attacks against Fed Chair Jerome Powell, threatening to fire him.