Dow Futures Drop 250 Points: Trump’s Shocking 70% Tariff Plan Crushes Wall Street’s TACO Tuesday Hopes

U.S. stock futures took a hit on Friday after President Trump announced he would be sending letters to various countries about the tariffs they’ll face. He mentioned that around “10 or 12” letters would be mailed out on Friday, with more to follow in the coming days. These tariffs are set to kick in on August 1.

He indicated that the tariffs could vary significantly, ranging from around 10% to as high as 70%.

As the markets were closed for the July 4 holiday, futures for the Dow Jones Industrial Average fell by 251 points, or about 0.56%. The S&P 500 and Nasdaq futures also dropped, by 0.64% and 0.68%, respectively.

In terms of commodities, U.S. oil prices fell by 0.75% to $66.50 a barrel, while Brent crude decreased by 0.41% to $68.52. Gold experienced a slight increase of 0.11% to $3,346.70 per ounce. The U.S. dollar also weakened, losing value against the euro and the yen.

The Trump administration has been in talks with major trade partners after putting tariffs on hold for 90 days. This pause is set to expire on July 9. While a few limited trade deals have been announced, negotiations with other nations may need additional time.

With the deadline fast approaching, many on Wall Street anticipated that Trump might announce an extension of the tariff pause by Tuesday. Analysts from Capital Economics suggested that last-minute compromises might be made to allow for extensions for most countries, though a few nations might face harsher penalties.

They noted that while the market seemed to expect a favorable outcome, there could be some volatility if that doesn’t happen. During the previous tariff announcement in April, markets saw a significant selloff. Trump has expressed a preference to unilaterally set tariffs rather than negotiating with all countries involved.

In a recent interview, Trump reiterated his intentions. He stated, “I’d rather just send them a letter, very fair letter, saying, ‘Congratulations, we’re going to allow you to trade in the United States of America.’” When asked about extending the tariff pause, he seemed confident it wouldn’t be necessary.

This ongoing tariff discussion reveals the intricate balance of international trade relations, and as analysts suggest, the financial market’s reaction plays a crucial role in shaping these policies.

For real-time updates on trade policies, check reliable sources like the U.S. Trade Representative’s Office.

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Donald Trump,Stock,Tariffs and trade