U.S. stock futures slipped on Monday following President Trump’s weekend announcement of new tariffs targeting key trading partners, the European Union and Mexico. Meanwhile, Bitcoin hit fresh record highs at the launch of “Crypto Week,” crude oil prices edged up, and China reported a larger-than-expected trade surplus.
Trump Imposes Tariffs on EU and Mexico
Global trade tensions escalated after U.S. President Donald Trump declared plans to implement 30% tariffs on imports from Mexico and the European Union starting August 1. This move follows similar tariffs imposed recently on Japan, South Korea, Canada, Brazil, and a 50% duty on copper imports.
The targeted countries now face a tight deadline to negotiate trade agreements with Washington, after the original July 9 deadline was postponed. Data shows U.S. customs duties hit a record $113.3 billion gross in the first nine months of fiscal 2025 (ending September 30).
U.S. Futures Drop Amid Trade Concerns
Investor nerves were evident as U.S. stock futures declined on fears of a global trade conflict. At 02:55 ET (06:55 GMT), S&P 500 futures were down 0.6%, Nasdaq 100 futures fell 0.5%, and Dow futures lost 0.6%. Last week, all major indices ended a three-week winning streak, retreating from record highs.
Trump’s tariff announcement further unsettled markets ahead of the critical quarterly earnings season, which kicks off Tuesday with major banks like JPMorgan Chase, Wells Fargo, and Citigroup reporting results.
China’s Trade Surplus Expands
China posted a stronger-than-expected trade surplus of $114.77 billion in June, boosted by export growth following tariff reductions under the trade deal with the U.S. This exceeded the forecasted $113.20 billion and May’s $103.22 billion.
Exports rose 5.8% year-on-year in dollar terms, above the expected 5% and the previous month’s 4.8%. Rare earth exports also increased as China eased export licensing in light of relaxed U.S. chip technology restrictions.
However, import growth remained subdued at 1.1% year-on-year, missing the 1.3% forecast but improving from a 3.4% decline the prior month.
This data sets the stage for Tuesday’s GDP report, which is expected to show China’s growth surpassing its 5% annual target.
Bitcoin Hits New Highs at “Crypto Week” Start
Bitcoin surged above $120,000 for the first time Monday, rising 3.7% to $122,020 at 02:55 ET, amid optimism over potential U.S. crypto legislation.
The rally is fueled by strong ETF inflows and growing hopes that landmark bills such as the Genius Act, Clarity Act, and Anti-CBDC Surveillance State Act will be debated this week in the U.S. House of Representatives.
If enacted, these laws could establish robust frameworks for stablecoins, crypto custody, and the digital financial ecosystem. The bills have President Trump’s backing, who has dubbed himself the “crypto president” and advocated for industry-friendly policies.
Bitcoin’s value is up 30% year-to-date, pushing the overall crypto market capitalization to around $3.78 trillion.
Oil Prices Inch Up Ahead of Trump’s Statement on Russia
Oil futures inched higher Monday as markets await a “major statement” from Trump on Russia, amid frustration over stalled progress in ending the Ukraine conflict.
At 02:55 ET, Brent crude futures rose 0.1% to $70.40 a barrel, while U.S. West Texas Intermediate futures increased 0.1% to $68.54.
Congress is advancing a bipartisan bill imposing further sanctions on Russia, pending Trump’s approval. EU officials are also close to agreeing on new sanctions, potentially including a lower price cap on Russian oil exports.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply