US stock futures fell late Thursday after President Trump threatened Canada with a 35% tariff on its imports to the US and floated higher blanket levies.
Futures tied to the S&P 500 (ES=F) and the tech-heavy Nasdaq (NQ=F) fell around 0.6% after the two indexes rose to eke out record highs on Thursday. Dow Jones Industrial Average futures (YM=F) fell 0.5%.
Trump on Truth Social posted a letter to Canadian Prime Minister Mark Carney, telling him that Canadian goods imported to the US would face a 35% tariff starting in August. In an interview with NBC News, Trump also floated 15% to 20% blanket tariffs on most trading partners, higher than the 10% level currently in effect.
The market has largely shaken off Trump's renewed tariff threats this week, which have culminated in nearly two-dozen letters to trading partners dictating the duties their country's imports will face beginning Aug. 1. That included Wednesday's announcement of a 50% levy on imports from Brazil, a striking move with which Trump waded into the country's domestic political scene.
Read more: The latest on Trump's tariffs
Investors had remained optimistic on Trump's shift in deadlines, which was originally set for this week, as the US continued to work on deals with major partners, including the EU, Canada, and India. Trump said the EU, in addition to Canada, would be receiving a letter “today or tomorrow.”
For his part, Trump brushed off concerns about inflation and touted the stock market highs reached on Thursday. Wall Street has rallied over the last few months, largely after he decided to pause his most sweeping duties on trade partners announced in April's “Liberation Day” event.
“I think the tariffs have been very well-received. The stock market hit a new high today,” he said.
At least one prominent investor had said Thursday that markets need to start taking the tariff threats a bit more seriously.
“Unfortunately, I think there is complacency in the markets,” JPMorgan CEO Jamie Dimon said Thursday.
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