U.S. stocks closed mostly lower Tuesday as investors digested the economic implications of President Donald Trump’s latest round of tariff threats. The S&P 500 dipped 0.1%, while the Dow Jones Industrial Average fell 165 points, or 0.4%. The Nasdaq eked out a modest gain of 0.03%.
Tariff Tensions Escalate
President Trump reaffirmed his administration’s commitment to implementing new reciprocal tariffs, stating there would be no further extensions beyond the revised August 1 deadline, which was pushed back from July 9. This stance has reignited concerns about the potential for a broader trade war if ongoing negotiations fail.
On Monday, Trump issued formal notices detailing tariff hikes on a range of countries. The measures include a 25% levy on imports from South Korea, Japan, Malaysia, and Kazakhstan; 30% on South Africa; 32% on Indonesia; 35% on Bangladesh; and 36% on Thailand. These new tariffs will not overlap with existing duties on sectors like autos, steel, and aluminum.
Notably, India and the European Union were excluded from this round of tariff letters—an omission analysts interpret as a possible signal that trade deals with those regions may be in the works.
According to a note from Wolfe Research, the flurry of tariff moves presents “decidedly mixed news” for markets. While the preliminary trade agreement with Vietnam and the new tariff measures could add an estimated $54 billion in annual revenue, the unresolved threat of further escalation keeps investors on edge.
Still, some market participants believe Trump will maintain flexibility to avoid major market disruption, particularly in the lead-up to key political and economic events.
“At a fundamental level, these letters don’t immediately change policy,” Wolfe analysts wrote. “But they do suggest a more hawkish tone in U.S. trade strategy.”
Amazon Launches Extended Prime Day
In corporate news, Amazon (NASDAQ: AMZN) began its annual Prime Day sales event, which has been extended to four days. Company executives said the change was made in response to customer feedback asking for more time to browse deals.
During last year’s Prime Day, U.S. consumers spent $14.2 billion—an 11% increase year-over-year—according to Adobe Analytics data cited by Reuters.
Executive Shakeup at Hershey
Hershey Co. (NYSE: HSY) shares slipped following reports that Wendy’s executive Kirk Tanner will become the company’s new CEO, effective August 18. Tanner replaces Michele Buck, who has led the chocolate giant for over two decades.
SoFi Hits Record High
SoFi Technologies Inc. (NASDAQ: SOFI) surged to an all-time high after announcing its expansion into alternative investments. The fintech firm will now offer clients access to private companies across emerging sectors such as artificial intelligence, machine learning, and space technology.
Fed Minutes in Focus
Looking ahead, investors are awaiting the release of the Federal Reserve’s June meeting minutes, scheduled for Wednesday. The Fed has reiterated its intention to hold interest rates steady as it assesses the inflationary impact of recent trade developments.