Trump Tariff Threats Send US Stocks, Dollar, Futures Lower

U.S. stock markets experienced declines following President Donald Trump's announcement that his administration will send letters to major trading partners within the next two weeks to formally establish new tariff terms, signaling a potential imposition of unilateral tariffs. The Dow Jones Industrial Average fell over 200 points, the S&P 500 and Nasdaq also slid, and the CBOE Volatility Index spiked, reflecting increased investor anxiety. Trump's remarks came ahead of a July 9 deadline for securing trade agreements, with the president emphasizing a take-it-or-leave-it approach to deals, despite previous postponements. The U.S.-China trade framework remains fragile, with ongoing high-level negotiations and accusations of breaches from both sides, while tariffs on some Chinese goods persist. Market reactions included a drop in futures across major indexes, a weakening dollar to a three-year low, and a rise in demand for safe-haven assets like gold and Treasury bills. Despite some positive earnings reports, such as Oracle’s strong performance driven by AI demand, investors remain cautious amid unresolved trade tensions and geopolitical uncertainties.