TLDR
- US stock futures fell Monday as President Trump threatened additional 10% tariffs on countries aligned with BRICS policies
- Trump confirmed tariff letters will be sent this week but duties won’t take effect until August 1, not July 9 as previously expected
- Only the UK and Vietnam have secured tariff deals with the US, plus a framework agreement with China
- Treasury Secretary Scott Bessent indicated some countries may receive three-week extensions beyond the July 9 deadline
- Markets are concerned about trade uncertainty as the administration targets 18 major trading partners and over 100 other countries
US stock futures declined Monday morning after President Trump issued fresh tariff threats targeting countries that align with BRICS policies. The warning comes as markets face uncertainty over looming trade deadlines.
HOLY SH*T 🚨 Donald Trump just announced an ADDITIONAL 10% TARIFF on any Country aligning with Anti American BRICS policies pic.twitter.com/9meoQXVder
— MAGA Voice (@MAGAVoice) July 7, 2025
Dow Jones Industrial Average futures fell 0.3%, while S&P 500 futures dropped 0.5% and Nasdaq 100 futures declined 0.6%. The pullback follows strong market performance last week when both the S&P 500 and Nasdaq hit record closing highs.
Trump announced late Sunday that any country supporting “Anti-American policies of BRICS” would face an additional 10% tariff. He emphasized there would be no exceptions to this policy in his social media post.
The BRICS group includes major US trading partners China and India, along with Brazil and Russia. The bloc had criticized Trump’s tariff policies during their weekend summit.
Trump’s latest threat escalates trade tensions as nations rush to secure deals before his self-imposed July 9 deadline. The president had previously paused steep tariffs implemented in April, but that pause is set to expire.
Treasury Secretary Scott Bessent confirmed over the weekend that tariff letters would be sent out this week. However, he clarified that the actual duties would not take effect until August 1, providing some relief to markets.
Limited Trade Deals Reached
So far, only the UK and Vietnam have secured comprehensive tariff deals with the US. China has reached a framework agreement but details remain unclear about the final terms.
Bessent hinted that several more deals could be announced in the coming days. The administration is focusing on 18 major trading partners before setting duties for over 100 other countries targeted for trade taxation.
The uncertainty over tariff timing and scope is creating confusion in global markets. Some countries may receive three-week extensions beyond the July 9 deadline, according to Bessent’s weekend comments.
Market Impact and Federal Reserve Focus
Stock futures reflected investor concerns about potential trade disruptions. Markets have been bracing for tariff impacts while equity prices sit at record levels.
The 10-year Treasury yield stood at 4.343% Monday morning, slightly down from the previous week. Bond markets are also watching for Federal Reserve policy signals.
Fed Minutes and Economic Data
This week will bring the release of Federal Reserve meeting minutes on Wednesday. Investors will scrutinize them for hints about future interest rate moves following June’s strong jobs report.
The better-than-expected nonfarm payrolls data reduced market expectations for a July rate cut. The Fed’s policy direction remains a key focus for traders alongside tariff developments.
Earnings season will begin Thursday with Delta Airlines reporting second-quarter results. The airline’s performance will provide early insights into corporate health amid trade uncertainties.
Trump and Bessent confirmed that while tariff notifications will go out this week, the August 1 implementation date gives markets and companies more time to prepare for potential trade impacts.
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