Stock Futures Decline as Trump Announces Delayed Tariff Implementation: Get Live Updates Here!

Traders at the New York Stock Exchange were on edge as U.S. stock futures dropped on a Sunday night in July 2025. The reason? President Trump announced that tariffs would start on August 1, instead of July 9, creating uncertainty in the market.

Futures for the Dow Jones slid by 146 points, or 0.32%. The S&P 500 and Nasdaq 100 followed, dipping 0.39% and 0.42% respectively. In a press conference, Trump clarified this change. Commerce Secretary Howard Lutnick explained that the president is currently setting the rates and making deals.

Treasury Secretary Scott Bessent also shared important news on CNN’s “State of the Union.” He mentioned that if negotiations don’t progress, tariff rates would revert to April levels starting August 1.

Investors were hoping to see these tariffs delayed. Originally, Trump had given a 90-day reprieve on tariffs for many U.S. trading partners, which was set to end soon. Meanwhile, the U.S. was under pressure to strike a deal with the European Union to avoid duties that could reach 50%.

Interestingly, Wall Street was riding high, with the S&P 500 and Nasdaq hitting all-time highs just days earlier. This optimism stemmed from belief that Trump wouldn’t apply the most severe tariffs he previously announced. The White House had downplayed the importance of the upcoming tariff deadlines as “not critical.”

Historically, trade negotiations take time. Rajeev Sibal, a senior global economist at Morgan Stanley, noted that these talks usually span about three years. While current negotiations might be quicker, they aren’t easy, and this background provides context for investors.

Concerns loom over a market that’s already at peak levels. Trade updates from the White House could lead to market instability, especially if tariffs increase. On the flip side, some analysts think the stock market can keep climbing. They believe companies might exceed expectations in their upcoming earnings reports, despite tariff worries.

Tom Lee, head of research at Fundstrat Global Advisors, reinforced this idea. He pointed out that reshaping economic flows around tariffs can enhance earnings, making it a surprising upside for investors.

As it stands, the U.S. has only managed a few agreements on tariffs. Recently, they reached a deal with the UK, keeping tariffs at 10%. A similar arrangement with Vietnam resulted in lowering rates from 46% to 20% on various goods.

As these negotiations progress, watching investor sentiment will be key. Tariff changes not only influence market stability but also reflect broader trade relationships crucial for the economy.

For further details, check out CNBC’s comprehensive reporting here.

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