Wall Street Ends in the Red After Trump Rejects Tariff Extension
In corporate news, Amazon (-1.7%) kicked off its Prime Day event, which will now run for four days, slightly longer than in previous years.
Quick overview
- Investor caution increased as President Trump announced new tariffs set to take effect next month, impacting market performance.
- The Dow Jones fell 0.37%, while the S&P 500 and Nasdaq showed mixed results amid uncertainty over the economic impact of the tariffs.
- Trump confirmed no further extensions for the tariffs, raising concerns about a potential trade war if negotiations falter.
- Amazon launched an extended four-day Prime Day event, responding to customer demand despite a soft market reaction.
Investor caution prevailed on Tuesday, July 8, after U.S. President Donald Trump sent formal letters to several countries announcing a new wave of tariffs set to take effect next month, even as trade talks continue with the European Union.
Markets wavered throughout the session, and Wall Street closed with mixed results as investors struggled to assess the full economic impact of Trump’s aggressive new tariff agenda.
- Dow Jones Industrial Average fell 0.37% to 44,240.76
- S&P 500 slipped 0.07% to 6,225.32
- Nasdaq Composite edged up 0.03% to 20,418.46
SPX
Trump Confirms No More Delays for August 1 Tariffs
Speaking to reporters, President Trump confirmed that his administration will not grant any further extensions to the reciprocal tariffs postponed to August 1, after the original July 9 deadline. The statement keeps alive the threat of a full-blown trade war if negotiations stall before the new cutoff date.
On Monday, the White House released letters outlining the new tariffs, including:
- 25% on imports from South Korea, Japan, Malaysia, and Kazakhstan
- 30% on South Africa
- 32% on Indonesia
- 35% on Bangladesh
- 36% on Thailand
The new tariffs will not be stacked with earlier sectoral tariffs already in place on automobiles, steel, and aluminum, according to administration officials.
Combined with a preliminary trade agreement reached with Vietnam last week, the tariff package is expected to generate around $54 billion in annual revenue for the U.S. government. Still, the extension amounts to a 90-day pause—initially declared in April—and does not remove the threat of elevated tariffs being reimposed in the coming weeks.
Amazon Launches Extended Prime Day Amid Soft Market Reaction
In corporate news, Amazon (-1.7%) kicked off its Prime Day event, which will now run for four days, slightly longer than in previous years. Executives said the extension was in response to Prime members asking for more time to shop deals.
During last year’s Prime Day (July 2024), U.S. consumers spent $14.2 billion, an 11% year-over-year increase, according to Adobe Analytics (+1.2%), which tracks digital spending.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
