U.S. Stocks Dip as Trump Tariffs Rattle Markets Ahead of CPI Report

🧩 Key Takeaways

• U.S. stocks edged lower as markets reacted to new 30% tariffs on Mexico and EU
• Tariffs now cover six major trading partners, including Japan, Canada, and Brazil
• U.S. customs duty revenue hits $113.3B, could rise to $300B by year-end
• All eyes on June CPI data and bank earnings season starting this week
• Oil prices rise amid expectations of new U.S. sanctions on Russia

📉 Markets Slip as Trade War Fears Reignite

U.S. stocks fell on Monday as investors grew nervous over rising trade tensions, following President Donald Trump’s latest tariffs on key trading partners. At 09:35 ET, the Dow Jones dropped 80 points (-0.2%), the S&P 500 fell 10 points (-0.1%), and the NASDAQ dipped 12 points (-0.1%).

Trump over the weekend imposed a 30% tariff on goods from Mexico and the EU, intensifying concerns of a global trade war. The tariffs, effective August 1, come on top of similar actions against Japan, South Korea, Canada, Brazil, and a 50% tariff on copper.

“These tariffs are part of a broader national security agenda,” Trump said, noting that talks with affected nations are ongoing.

U.S. Tariff Revenue Soars

Newly released data shows that U.S. customs duty collections hit a record-high $113.3 billion in the first nine months of fiscal year 2025. Treasury Secretary Scott Bessent projects this figure could rise to $300 billion by December, making tariffs a major revenue stream for the government.

While these measures aim to boost domestic industries, analysts warn of higher import costs, slower growth, and retaliatory actions from U.S. trading partners.

📊 Key Economic Events: CPI and Earnings

Attention is now shifting to June’s Consumer Price Index (CPI), set for release on Tuesday. Wall Street expects:

• Monthly CPI: +0.3% (vs. +0.1% prior)
• Annual CPI: +2.6% (vs. +2.4% in May)

The inflation print could offer insights into the Federal Reserve’s next rate move. Currently, Fed futures suggest a low probability of a July rate cut, but many expect easing in September.

Meanwhile, the Q2 corporate earnings season begins this week, with major banks like:

• JPMorgan Chase (JPM)
• Bank of America (BAC)
• Wells Fargo (WFC)

…set to report, along with Netflix, Johnson & Johnson, and 3M.

Read More: http://Copper Prices Dip to $5.50 as Trump’s New Tariffs Stir Trade Tensions

🛢️ Crude Oil Climbs on Russia Sanction Speculation

Oil prices moved higher as markets braced for possible new U.S. sanctions on Russia. Brent crude rose 0.3% to $70.59, while WTI climbed 0.4% to $68.70.

Trump is expected to make a major announcement on Russia later Monday. A bipartisan bill proposing new sanctions has gained momentum in Congress, potentially targeting Russia’s energy sector.

Stocks to Watch

• 🏗️ Fastenal (FAST) rose after beating Q2 revenue and profit forecasts
• 🧴 Kenvue (KVUE) gained after CEO Thibaut Mongon stepped down amid investor pressure

📋 Market Summary Table

📣 Final Thoughts

Trump’s tariff spree has rattled investor confidence, reviving fears of a global trade showdown. With inflation data and earnings season around the corner, markets face a critical week. All eyes are on Tuesday’s CPI release and upcoming earnings to gauge the broader economic outlook.

📢 What’s your take, Are tariffs a smart move or a risky gamble? Share your thoughts in the comments below!

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