Dow, S&P 500, Nasdaq futures slide after Trump threatens 35% Canada tariff, higher blanket duties

US stock futures fell on Friday 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) fell 0.6%, while those on the tech-heavy Nasdaq (NQ=F) fell around 0.5% after the two indexes rose to eke out record highs on Thursday. Dow Jones Industrial Average futures (YM=F) fell 0.6%, dropping around 300 points.

Late Thursday, 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.

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 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, though that has come 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.

In corporate news, Levi's (LEVI) shares rose 7% premarket after the retailer raised its annual its annual revenue and profit forecasts.

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Levi's rises after lifting annual forecasts on steady denim demand in Europe despite tariff pain

Shares in online retailer Levi's (LEVI) rose on Friday before the bell by 7% after it raised its annual revenue and profit forecasts after beating quarterly estimates on Thursday, betting on strong demand for its denims in regions such as Europe in the face of tariff uncertainty.

Reuters reports:

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Gold holds two-day rise with tariffs and interest rates in focus

Gold (GC=F) maintained its two-day rise as traders focused on tariff threats from President Trump and the outlook for US monetary policy.

Bloomberg News reports:

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Asian markets mixed as tariffs shake global economy, Chinese stocks lead gains

Asian equities traded mixed overnight Thursday as investors took a cautious stance despite a record-setting session on Wall Street. US stock futures fell overnight following President Trump's announcement of a broad 35% tariff on Canadian imports to come into effect on August 1.

Mainland Chinese and Hong Kong stocks led regional gains. The Hang Seng Index (^HSI) advanced 1.6%, while the Shanghai Composite (000888.SS) rose 1.1%, reflecting optimism around China's economic recovery efforts.

Elsewhere in Asia, performance was more subdued. Japan’s Nikkei 225 (^N225) inched down 0.1% while South Korea’s Kospi (^KS11) edged up 0.1%. Australia’s S&P/ASX 200 (^AXJO) slipped 0.1%,
Stock futures take a leg lower after Trump's tariff threats

President Trump late Thursday said Canada would face a 35% tariff on goods imported to the US, and he floated higher blanket rates for most trading partners.

The dollar (DX=F) gained in immediate reaction: