Dow Jones Slips as Trump Pushes Higher EU Tariffs: Earnings & Fed Meeting in Focus
The Dow Jones Industrial Average (DJIA) fell 142.30 points (-0.32%) to 44,342.19 on Friday after reports that President Donald Trump is seeking 15–20% tariffs on European Union (EU) imports. The news of tariffs caused the Dow Jones to slip amid concerns over economic impacts, with a 30% tariff deadline set for August 1 if no deal is reached. Dow Jones slips due to Trump EU tariffs tensions.
The market reaction was significant, Dow Jones slips under the pressure of Trump EU tariffs as the S&P 500 dipped 0.01% to 6,296.79, briefly touching a record high intraday, while the Nasdaq Composite rose 0.05% to 20,895.66.
📊 U.S. Stock Market Recap – July 18, 2025
Despite Friday’s modest losses, weekly performance was mixed:
| Index | Friday Close | Daily % Change | Weekly % Change |
|---|---|---|---|
| Dow Jones | 44,342.19 | -0.32% | -0.1% |
| S&P 500 | 6,296.79 | -0.01% | +0.6% |
| Nasdaq | 20,895.66 | +0.05% | +1.5% |
Trump Tariff Tensions Weigh on Sentiment
According to the Financial Times, Trump is pressing for higher EU tariffs as part of trade negotiations. The EU aims to strike a deal before the August 1 deadline to avoid punitive measures, impacting Dow Jones slips amid tariff concerns.
Analysts warn that further trade tensions could:
✅ Pressure multinational companies with high EU exposure
✅ Add volatility to industrial and tech-heavy indices
Earnings Season Spotlight – Google, Tesla, Intel to Report
Investors are now turning to Q2 2025 earnings, with high-profile names set to report this week. Dow Jones slips on earnings anticipation and Trump EU tariffs.
| Major Companies Reporting This Week | Date |
|---|---|
| Alphabet (GOOGL) | Wednesday, after market close |
| Tesla (TSLA) | Wednesday, after market close |
| Intel (INTC) | Thursday |
| General Motors (GM) | Tuesday |
| Coca-Cola (KO) | Tuesday |
| IBM (IBM) | Thursday |
Key Sector Insights:
- Industrials: Best-performing sector YTD (+15% vs +7% S&P 500), with Aerospace & Defense up 30% on geopolitical tensions. Key earnings: RTX, Lockheed Martin (LMT), General Dynamics (GD).
- Tech (Magnificent 7): Q2 EPS growth projected at 14%, down from 17% last quarter. Notably, Dow Jones slips amid concerns of Trump EU tariffs.
- Broader S&P 500: Earnings growth revised to 3.5% YoY, down from 11% expected earlier in 2025.
Fed Meeting & Economic Data Ahead
Market attention also shifts to the Federal Reserve policy meeting (July 29–30) amid Trump’s renewed pressure on Fed Chair Jerome Powell to cut rates.
Key economic data to watch this week:
✅ Manufacturing & services PMI updates
✅ Weekly jobless claims
✅ Existing home sales
What Analysts Are Saying
JPMorgan:
“Headline beats likely, but elevated valuations mean mixed guidance could disappoint.”
Evercore ISI:
“FOMO is back, but volatility in late July–Sept is likely. Expect a 7–15% correction before the structural bull market resumes.” Dow Jones slips in part due to Trump EU tariffs.
Citi:
“This earnings season will be crucial to confirm if small/mid-cap growth can recover. A growth inflection could narrow the valuation gap vs the S&P 500.”
Goldman Sachs:
“USD weakness supports multinational firms, but further trade tensions remain the biggest risk for globally exposed companies like those affected when Dow Jones slips due to Trump EU tariffs.”
💬 Do You Expect a Summer Correction?
With Trump’s tariff threats, a Fed meeting, and major tech earnings this week, will markets correct in late July, or continue to rally into Q3? Share your view below! 🔥📉
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