U.S. stocks slipped Monday as investors reacted to renewed trade tensions, after President Donald Trump announced 30% tariffs on imports from Mexico and the European Union—heightening concerns over an expanding trade war.
As of 09:35 ET, the Dow Jones Industrial Average was down 80 points, or 0.2%. The S&P 500 declined 10 points, or 0.1%, and the NASDAQ Composite edged 12 points lower, or 0.1%.
Trump Targets Mexico, EU with New Tariffs
Over the weekend, Trump unveiled new tariffs targeting major U.S. trading partners, imposing a 30% levy on goods from Mexico and the EU. This followed earlier duties on imports from Japan, South Korea, Canada, and Brazil, as well as a 50% tariff on all copper imports.
The new tariffs are set to take effect on August 1, giving the affected countries a short window to negotiate trade deals with Washington. The original deadline had been postponed from July 9.
Trump told reporters Sunday that discussions with South Korea and the EU are ongoing, with both seeking to avert the full impact of the tariffs.
Customs duty collections have surged to a record $113.3 billion in the first nine months of fiscal 2025. Treasury Secretary Scott Bessent projected that figure could reach $300 billion by year-end, marking a significant boost to federal revenue.
Inflation and Earnings in Focus
Beyond trade developments, attention this week turns to key economic data and the start of earnings season.
The June Consumer Price Index (CPI) report, due Tuesday, is expected to show a 0.3% monthly increase, up from 0.1% in May. Year-over-year inflation is forecast to rise to 2.6%, compared to 2.4% previously. The data will offer fresh clues on whether the Federal Reserve may cut rates later this year.
At its June meeting, the Fed left rates steady in the 4.25%–4.5% range. While a July rate cut appears unlikely, markets are pricing in a potential move in September.
Meanwhile, the second-quarter corporate earnings season begins in earnest. Big banks like JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) are set to report, along with Netflix (NFLX), Johnson & Johnson (JNJ), and 3M (MMM).
In early movers, Fastenal (FAST) shares gained after the company beat Q2 estimates, driven by stronger demand for safety products. Kenvue (KVUE) rose following the resignation of CEO Thibaut Mongon, the latest executive shakeup amid pressure from activist investors.
Oil Prices Tick Higher
Crude prices rose Monday as markets awaited a potential announcement of new U.S. sanctions on Russia that could impact global oil supply.
At 09:35 ET, Brent crude was up 0.3% at $70.59 a barrel, while WTI crude gained 0.4% to $68.70.
Trump is expected to issue a “major statement” on Russia later Monday, amid growing bipartisan support in Congress for expanded sanctions. EU officials are also nearing agreement on a new sanctions package, which may include a stricter price cap on Russian oil exports.
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