Markets Poised to Sink Over New Tariffs

With the deadline for President Trump's new tariffs here, investors are busy digesting the details—and they don't seem too happy. The Dow is on track to open down 400 points, or about 1%, while the benchmark S&P 500 and the tech-focused Nasdaq are down similar percentages, reports CNBC. Trump imposed new tariffs on a slew of countries Thursday night as the deadline to work out deals expired, though he delayed their implementation until August 7. Many (including the European Union and Japan) will see tariffs of 15%, others (such as Switzerland and Taiwan) are still negotiating, and still others face higher levies, such as Canada's 35%, per the Wall Street Journal. Markets in Europe and Asia fell, and the US market is poised to do the same.

"Investors have been wrapping tariffs in a 'better than feared, we finally have clarity' patina of optimism for weeks, but that perspective is wearing thin as reality sets in—tariffs will have stagflationary implications for the economy as they slowly seep into the data over the course of many months," wrote Adam Crisafulli of Vital Knowledge, per CNBC. "We continue to think this issue is more negative than the consensus appreciates."