US Stock Futures Drop as Trump’s Tariff Threats Shake Markets

U.S. stock index futures declined Monday evening following a sharp selloff on Wall Street, driven by renewed concerns over trade tariffs introduced by President Donald Trump. Despite an extension of the tariff deadline to August 1, markets were rattled as Trump unveiled new levies targeting key trade partners.

S&P 500 Futures slipped 0.2% to 6,265.25, Nasdaq 100 Futures edged down 0.1% to 22,860.50, and Dow Jones Futures dropped 0.2% to 44,571.0 by 19:16 ET. The losses reflect rising investor caution amid uncertainty about the economic fallout from the tariffs.

Trump issued tariff letters imposing a 25% duty on imports from South Korea, Japan, Malaysia, and Kazakhstan. Tariffs also included 30% on South Africa, 32% on Indonesia, 35% on Bangladesh, and 36% on Thailand. Analysts and the Federal Reserve warned that such tariffs could stoke inflation, adding pressure on American importers and potentially weighing on consumer prices.

The White House signaled openness to further trade negotiations. Treasury Secretary Scott Bessent noted more trade deals may be announced soon. However, with more tariff letters expected this week, investor sentiment remained shaky.

On Wall Street, all major indexes declined. The S&P 500 fell 0.8% to 6,229.98, the Nasdaq Composite slid 0.9% to 20,412.52, and the Dow Jones dropped 0.9% to 44,406.36. Tesla stock plunged 6.8%, losing $60 billion in market cap after CEO Elon Musk launched a political party—raising concerns over leadership focus. The stock regained 0.6% in after-hours trading.

Investors now await Wednesday’s release of the Federal Reserve’s June meeting minutes for further clues on interest rate policy amid inflation risks tied to Trump’s trade agenda.