Dow Futures Plunge as Trump Threatens 70% Tariffs, Cancels TACO Tuesday

Dow Futures Plunge on Trump's Tariff Threat

U.S. stock futures tumbled as President Trump announced new tariffs as high as 70%, set to take effect August 1. The announcement surprised markets, which had anticipated an extension to the current tariff pause.

Market Reaction

Futures tied to the Dow Jones Industrial Average dropped 251 points. The S&P 500 and Nasdaq futures also experienced declines.

Trump's Announcement

Trump stated that letters detailing the tariff rates, ranging from 10% to 70%, would be sent out soon. This move precedes the July 9 expiration of the current tariff reprieve.

Analyst Expectations

Analysts at Capital Economics had anticipated a tariff pause extension but warned against assuming such an outcome, citing the potential for market volatility if it failed to materialize. The market was positioned for a fairly benign outcome, implying a risk of some near-term turbulence if that fails to materialise.