U.S. stock futures moved higher on Thursday following the implementation of President Donald Trump’s expanded tariff measures, which target a wide array of countries and aim to reshape global trade dynamics. In parallel, Apple announced plans to increase investment in American manufacturing, while Trump suggested a possible 100% tariff on semiconductor imports but indicated exemptions for companies boosting domestic production. Meanwhile, Toyota (NYSE:TM) lowered its full-year operating profit forecast due to tariff-related pressures.
Markets Climb on Tariff News and Earnings
By 2:45 a.m. ET, futures were up modestly: Dow futures rose 34 points (0.1%), S&P 500 futures added 17 points (0.3%), and Nasdaq 100 futures gained 67 points (0.3%). Wall Street’s main indexes had climbed in the prior session, driven by strong earnings reports including a robust quarter from McDonald’s (NYSE:MCD). Apple shares (NASDAQ:AAPL) also rallied, supported by its announcement to boost domestic manufacturing (details below).
The S&P 500 has bounced back from a late-week dip caused by disappointing employment data.
As analysts at Vital Knowledge put it, “The easiest explanation is that nothing happened to alter the current trend (which has been to the upside); the burden of proof is on the bears to shift the market’s mood, and (so far) they’ve failed to do so.” They also noted that expectations of Federal Reserve interest rate cuts due to weak job data have helped lift investor sentiment. Some Fed officials recently suggested they might lower rates at next month’s meeting to support a cooling labor market, despite concerns tariffs may add to inflation.
Trump’s Tariffs Take Effect
After midnight Eastern time, Trump’s increased tariffs came into force, affecting over 90 countries as part of the administration’s ongoing trade agenda.
Countries like Bolivia and Nigeria face a 15% tariff, while Taiwan and others are hit with 20%. Brazil and India face even higher tariffs, partly due to political disputes — Brazil’s prosecution of Trump ally Jair Bolsonaro and India’s purchase of Russian oil.
Some trading partners, including the UK, European Union, Japan, South Korea, and Vietnam, negotiated preliminary trade deals with the U.S. before the tariffs started, resulting in rates between 15% and 20%. These agreements often included commitments to open markets to American goods and, in some cases, to invest in the U.S.
The existing 30% tariff on Chinese goods remains in place after a trade truce earlier this year but is set to expire on August 12.
Trump also warned of a 100% tariff on semiconductor imports to encourage reshoring chip production, but “companies who promise to invest and build in the U.S. will be exempted.”
Apple Pledges Major U.S. Investment
Apple CEO Tim Cook joined Trump at the White House to announce an additional $100 billion investment in the U.S., emphasizing efforts to grow the company’s American manufacturing presence and relocate parts of its supply chain.
Cook said he was taking Trump’s call for reshoring “very seriously.”
Apple shares jumped more than 2% in after-hours trading Thursday, after a gain of over 5% the previous day.
Earlier this year, Apple revealed plans to invest $500 billion in the U.S., with goals to hire 20,000 workers over four years and build a new Texas plant focused on AI-related manufacturing.
Despite Trump’s May threat of a 25% tariff on imported smartphones, Apple has yet to bring all iPhone production to the U.S., shifting some manufacturing from China to India and Thailand instead.
Toyota Lowers Profit Outlook Due to Tariffs
Shares of Toyota declined after the automaker cut its fiscal year operating profit forecast by 16%, citing a $10 billion hit from U.S. tariffs on imported vehicles, rising input costs, and a stronger yen.
Toyota now expects operating profit of 3.2 trillion yen for the year ending March 2026, down from 3.8 trillion yen. U.S. tariffs alone are projected to reduce income by 1.4 trillion yen (about $9.5 billion), much more than previously estimated.
This revision, along with a weaker first-quarter profit, highlights the impact of Trump’s aggressive trade policies on foreign automakers.
Still, demand has remained solid: Toyota reported record global sales for the first half of the year, and its operating profit of 1.17 trillion yen in Q1 exceeded analyst expectations.
China’s Export Growth Accelerates
China’s exports rose more rapidly in July, despite declining shipments to the U.S., showing that tariffs have yet to heavily damage this key sector of the Chinese economy.
July exports increased 7.2% year-on-year in dollar terms, up from 5.8% in June, according to data from China’s General Administration of Customs.
However, exports to the U.S. fell 22% year-over-year in July, following declines of 16% and 35% in June and May.
These numbers indicate that while U.S.-China trade tensions have eased somewhat, China has managed to sustain exports by redirecting shipments to other countries, which is vital given the country’s sluggish domestic demand and ongoing property market challenges.
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