U.S. stock futures are lower after President Donald Trump slapped Canada with a 35% tariff, starting Aug. 1.
Goods complying with the U.S.-Mexico-Canada Agreement would still be exempt for now, a White House official said.
Canada is the U.S.’ second largest trading partner. It recently rescinded a digital services tax to get Trump back to the negotiating table over trade issues.
Trump also told NBC News he is eyeing blanket tariffs of 15% to 20% on most trading partners, although exact levels are still being determined. The current blanket tariff rate is 10%.
At 6:05 a.m. ET, futures tied to the blue-chip Dow fell -0.69%, while broad S&P 500 futures dropped -0.67% and tech-laden Nasdaq futures slipped -0.63%.
The new tariff announcement comes after stocks shrugged off a 50% tariff on copper imports, effective Aug. 1, and a 50% tariff on Brazil.
Instead, investors focused on positive corporate news, including better-than-expected results and outlook from Delta Air Lines. Its annual earnings outlook had been pulled in April due to tariff uncertainty but was reinstated as bookings stabilized. Delta’s annual earnings per share guidance was lower than its forecast in January but higher than Wall Street’s estimates, helping allay some fears about recent tariff chaos. The tech-laden Nasdaq and broad S&P 500 closed at record highs.
“Going into second-quarter earnings season, stocks could get an added boost from low expectations,” said Kristy Akullian, head of iShares investment strategy, Americas, at BlackRock. “Analyst forecasts have steadily fallen since the first-quarter in the face of policy uncertainty, meaning that consensus expectations of 3% year-over-year earnings growth for the S&P 500 could be a low bar compared to the 13% growth delivered in the first quarter.”
Corporate news
Jeans maker Levi Strauss topped expectations with its second-quarter results and raised its full-year outlook above analysts’ forecasts. It said it has been working to absorb additional tariff costs rather than pass them on to consumers.
PriceSmart’s quarterly results topped analysts’ estimates.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: US stock futures lower after Trump slaps Canada with 35% tariff
