U.S. stock futures are lower after President Donald Trump further escalated trade tensions.
Over the weekend, Trump announced a 30% tariff on goods from the European Union and Mexico, starting Aug. 1. Mexico and EU leaders said they would continue to negotiate this month before that date.
The EU is now preparing to step up its engagement with other countries hit by Trump’s tariffs, according to people familiar with the matter, according to Bloomberg. Other reports say the EU is considering retaliatory tariffs against the U.S. if no deal is reached and U.S. levies are enacted.
At 6:15 a.m. ET, futures linked to the blue-chip Dow fell -0.30%, while broad S&P 500 futures slipped -0.28% and tech-heavy Nasdaq futures fell 0.30%.
Bitcoin rallied to a record high for a fourth time in the past week. The digital unit jumped to $119,300 ahead of “Crypto Week,” which begins July 14. This week, lawmakers will debate three key bills aimed at providing clear regulatory frameworks for digital assets, stablecoins, and blockchain technologies.
Later this week, investors will get aother round of inflation data to comb through for signs Trump’s tariffs are affecting consumer prices and the economy.
Fed chief under fire
Investors will also have to contend with increasing pressure on Federal Reserve Chairman Jerome Powell.
On Sunday, National Economic Council Director Kevin Hassett said Trump can fire Fed Chair Jerome Powell “if there’s cause.”
Office of Management and Budget Director Russell Vought has said Powell “has grossly mismanaged the Fed” and suggested he had misled Congress about a pricey and “ostentatious” renovation of the central bank’s headquarters. He is vowing a probe into this.
Trump said over the weekend if Powell stepped down, that would be a “good thing.”
Corporate news
Earnings season is about to ramp up, with large banks like JP Morgan, Bank of America and Goldman Sachs set to report this week.
Tesla plans to poll shareholders on whether to invest in xAI, chief executive Elon Musk said after the Wall Street Journal reported SpaceX will invest $2 billion into the Grok chatbot developer.
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 announces 30% tariff on Mexico, EU
