U.S. stock futures nudged higher Thursday following the activation of President Donald Trump’s newest wave of tariffs, which target a broad range of countries and aim to reshape longstanding global trade arrangements. In parallel, Apple committed to ramping up manufacturing investments in the U.S., while Trump hinted at a possible 100% tariff on semiconductor imports but suggested exemptions for companies that expand domestic production. Meanwhile, Toyota (NYSE:TM) lowered its full-year operating profit forecast, attributing the revision largely to tariff-related expenses.
Futures Gain Ground
By 2:45 a.m. ET, Dow futures had inched up 34 points (0.1%), the S&P 500 futures gained 17 points (0.3%), and Nasdaq 100 futures rose 67 points (0.3%). The previous session saw the main indexes on Wall Street climb, buoyed by solid earnings reports, including strong results from McDonald’s (NYSE:MCD). Apple shares (NASDAQ:AAPL) also rose sharply after announcing increased U.S. manufacturing investments (details below).
Following Wednesday’s trading, the S&P 500 recovered from a dip caused late last week by weaker-than-expected employment data.
Vital Knowledge analysts commented, “The easiest explanation is that nothing happened to alter the current trend (which has been to the upside); the burden of proof is on the bears to shift the market’s mood, and (so far) they’ve failed to do so.” They further noted that hopes the Fed would lower interest rates in response to soft job figures have also bolstered investor confidence. Several Fed officials recently signaled they may consider cutting rates at the upcoming meeting to address a cooling labor market, despite lingering concerns tariffs could stoke inflation.
Trump’s New Tariffs Take Effect
Just after midnight Eastern time, Trump’s expanded tariffs went live, impacting over 90 countries as part of the administration’s ongoing trade overhaul.
Some countries, such as Bolivia and Nigeria, now face a 15% tariff, while others including Taiwan are subject to a 20% duty. Brazil and India face even steeper tariffs — partly due to political factors like Brazil’s prosecution of Trump ally Jair Bolsonaro and India’s purchase of Russian oil.
A number of trading partners, including the UK, EU, Japan, South Korea, and Vietnam, negotiated preliminary trade deals with Washington before the tariffs began, resulting in tariff rates between 15% and 20%. In exchange, they agreed to open markets to U.S. goods and, in some cases, pledge investments in the U.S.
Meanwhile, the existing 30% tariff on Chinese goods remains in place following a trade truce earlier this year but is set to expire August 12.
Trump also threatened a 100% tariff on semiconductor imports to encourage reshoring of chip manufacturing, but “companies who promise to invest and build in the U.S. will be exempted.”
Apple Commits to U.S. Investment
At the White House, Apple CEO Tim Cook announced plans to invest an additional $100 billion in the U.S., emphasizing the company’s goal to expand its American manufacturing footprint and bring back more of its supply chain.
Cook said he was taking Trump’s call to reshore operations “very seriously.”
Apple shares jumped over 2% in after-hours trading Thursday, following a more than 5% gain the day before.
Earlier this year, Apple revealed plans to invest $500 billion in the U.S., aiming to hire around 20,000 workers over four years and build a new facility in Texas focused on machines for artificial intelligence development.
Despite Trump’s May threat of a 25% tariff on imported smartphones, Apple has yet to fully shift iPhone production to the U.S., instead moving some manufacturing from China to countries like India and Thailand.
Toyota Cuts Profit Outlook Amid Tariff Pressure
Shares of Toyota dipped after the automaker lowered its fiscal year operating profit forecast by 16%, citing an expected $10 billion cost from U.S. tariffs on imported vehicles, rising input costs, and a stronger yen.
Toyota now expects 3.2 trillion yen in operating profit for the year ending March 2026, down from 3.8 trillion yen. U.S. tariffs alone are projected to reduce income by 1.4 trillion yen (about $9.5 billion), a much higher estimate than previously forecast.
The forecast cut and a dip in first-quarter profit highlight the challenges foreign automakers face from Trump’s aggressive trade policies.
However, demand remains strong: Toyota posted record global sales for the first half of the year, and its operating profit of 1.17 trillion yen in Q1 beat analyst expectations.
China’s Export Growth Remains Strong
China’s exports grew faster than expected in July, despite a decline in shipments to the U.S., indicating that tariffs have yet to severely impact a vital part of the Chinese economy.
Exports rose 7.2% in dollar terms compared to last July, up from 5.8% in June, according to Thursday data from China’s General Administration of Customs.
Meanwhile, exports to the U.S. dropped 22% year-over-year in July, following declines of 16% and 35% in June and May.
The figures suggest that although U.S.-China trade tensions have eased somewhat, China has managed to sustain exports by shipping to other global markets — a key factor supporting economic activity amid sluggish domestic consumer demand and a prolonged property slump.
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