Quick overview
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.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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