U.S. stock futures fell early Monday as financial markets digested a whirlwind of global developments — including aggressive new tariffs from President Donald Trump, upbeat trade figures from China, and a fresh surge in Bitcoin prices fueled by crypto optimism in Washington.
Trump Unveils Sweeping Tariffs on EU and Mexico
Tensions in global trade escalated over the weekend after President Trump announced sweeping 30% tariffs on imports from Mexico and the European Union, effective August 1. This follows a series of recent levies targeting Japan, South Korea, Canada, Brazil, and a hefty 50% duty on copper.
With the original July 9 trade deal deadline postponed, impacted countries are now racing against time to reach agreements with Washington. According to government data, U.S. customs revenue soared to a record $113.3 billion in the first three quarters of fiscal 2025.
Markets React as Futures Slide
Investor anxiety over a looming trade conflict weighed on sentiment. As of 02:55 ET (06:55 GMT), futures for the S&P 500 dropped 0.6%, while contracts for the Nasdaq 100 and Dow Jones Industrial Average both declined by 0.5% and 0.6%, respectively. Last week, the major indexes snapped a three-week winning streak, retreating from historic highs.
The market downturn comes just ahead of earnings season, which begins Tuesday with results from major banks including JPMorgan Chase, Citigroup, and Wells Fargo.
China’s Trade Surplus Beats Expectations
Adding a new twist to global trade dynamics, China reported a stronger-than-forecast trade surplus of $114.77 billion for June, buoyed by a rise in exports tied to recent tariff relief negotiated with the U.S. That figure exceeded both May’s $103.22 billion and analyst projections of $113.20 billion.
Exports jumped 5.8% year-on-year in dollar terms, surpassing expectations of 5%, while imports grew a softer 1.1%, narrowly missing forecasts but still rebounding from a 3.4% drop the prior month. Shipments of rare earths also rose as China relaxed export controls following eased U.S. chip restrictions.
The data comes ahead of China’s second-quarter GDP release, which analysts expect to show annual growth topping the 5% government target.
Bitcoin Surges Past $122K as “Crypto Week” Begins
Bitcoin continued its remarkable 2025 rally, hitting a new record high of $122,020 by 02:55 ET, a 3.7% increase on the day, amid optimism surrounding the kickoff of “Crypto Week” in Washington.
Investor attention has shifted to the U.S. House of Representatives, where several high-profile bills — including the Clarity for Digital Tokens Act, the Genius Act, and the Anti-CBDC Surveillance State Act — are slated for debate. These proposals aim to build a comprehensive regulatory framework for stablecoins, custody services, and digital assets.
The crypto market rally has also been driven by heavy inflows into spot Bitcoin ETFs. Bitcoin is now up 30% year-to-date, with the total crypto market cap hovering near $3.78 trillion. President Trump has thrown his support behind the legislative push, referring to himself as “the crypto president.”
Oil Edges Higher Ahead of Trump’s Russia Announcement
Crude oil prices posted slight gains as traders waited for a promised announcement from President Trump regarding Russia — one that could shape future energy policy and sanctions.
At 02:55 ET, Brent crude was up 0.1% at $70.40 a barrel, while West Texas Intermediate (WTI) also rose 0.1% to $68.54. The U.S. Congress is moving forward with a bipartisan sanctions bill aimed at further restricting Russian energy exports, pending presidential approval. European Union leaders are reportedly nearing an agreement on additional penalties, including a potential cut in the price cap for Russian oil.
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