US Futures Slide as Trump’s Global Tariff Blitz Sparks Inflation Worries

U.S. stock index futures dipped Sunday night as fears of a deepening global trade war resurfaced. President Donald Trump announced sweeping 30% tariffs on imports from Mexico and the European Union, expanding his aggressive tariff agenda following similar levies on Canada, Japan, South Korea, and Brazil.

By 7:17 p.m. ET, S&P 500 Futures dropped 0.4% to 6,274.0, Nasdaq 100 Futures slipped to 22,859.0, and Dow Jones Futures fell 0.4% to 44,417.0. The pullback reflects growing concerns over inflationary pressure and market volatility ahead of key U.S. economic data.

The tariffs, effective August 1, give targeted nations a brief window to negotiate exemptions. Trump, who delayed the initial deadline from July 9, confirmed ongoing talks with the EU and South Korea aimed at averting the new levies.

These trade measures have pushed U.S. customs duty collections to a record $113.3 billion in the first nine months of fiscal 2025, with Treasury Secretary Scott Bessent projecting $300 billion by year-end. However, economists warn the tariffs are ultimately paid by U.S. importers, who may pass costs to consumers, stoking inflation.

Wall Street has already reacted. On Friday, the S&P 500 fell 0.3% to 6,259.75, the NASDAQ dropped 0.2%, and the Dow shed 0.6% to 44,371.51.

Markets now await June’s CPI inflation report, due Tuesday, to assess the direct impact of tariffs on consumer prices. Both headline and core inflation are expected to rise. The Federal Reserve has flagged trade tensions as a source of inflation risk and uncertainty, justifying its cautious stance on rate cuts—despite Trump’s repeated calls for lower rates and criticism of Fed Chair Jerome Powell.