Dow falls 200 points after Trump threatens unilateral tariffs

3 1 minute read

Stocks Drop as Trump Threatens Tariffs on U.S. Trading Partners

Stocks fell at the open on Thursday as President Donald Trump’s threat to impose unilateral tariffs on key U.S. trading partners renewed trade tensions.

The Dow Jones Industrial Average dropped 230 points, or 0.54%, to 42,634.95 after the bell. The S&P 500 slid 0.28%, while the Nasdaq dipped 0.24%. The small-cap Russell 2000 also declined, losing 0.38%.

President Donald Trump said he plans to unilaterally impose tariffs on dozens of trading partners, reviving concerns about a global trade war and sending a jolt through financial markets. Shutterstock

Meanwhile, the CBOE Volatility Index (VIX) spiked more than 5%, signaling rising investor unease.

The market downturn came after Trump confirmed his administration’s intention to send letters to U.S. trade partners in the coming weeks to establish new tariff terms.

“We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” Trump said.

Trump’s remarks come ahead of a July 9 deadline, when increased tariffs on imports are expected to move forward unless new trade agreements are secured.

Dow Jones Industrial Average futures were down 302 points, or 0.70%, at 42,606.00 before the opening bell on Thursday. The S&P 500 futures slipped 37.25 points, or 0.62%. AP

Trump has shifted his strategy towards bilateral deals with countries like India, Japan, South Korea, and the European Union. Commerce Secretary Howard Lutnick noted that negotiations with the EU have been difficult due to the bloc’s complexity.

With Trump reaffirming his tariff plans and few trade deals finalized, Thursday’s sharp losses indicate the possibility of a broader economic confrontation in the weeks ahead.

The White House has not yet provided a comment on the matter.