U.S. stock futures fell sharply early Friday after President Donald Trump said his administration will start sending letters to trading partners about new tariffs that could reach as high as 70%.
Trump made this announcement during a press conference on Thursday, saying that around 10 or 12 countries will receive the first letters, with more to follow before a July 9 deadline.
The S&P 500 futures led the decline, dropping 0.6%. Dow futures and Nasdaq futures also fell, with technology stocks seeing the biggest losses. The announcement caused concern among investors, who worry that high tariffs could hurt global trade and slow down the economy.
Trump did not say which countries will be affected, but he said the tariffs will take effect next month. The move is part of his administration’s effort to push for better trade deals. The president said the tariff rates will range from 60% to 70% for some countries.
European stock markets also dropped after the news. The STOXX 50 index fell 0.7%, and London’s FTSE 100 slipped 0.3%.
Economists warn that such high tariffs could lead to a trade war and damage both the U.S. and global economies. Investors are now watching closely to see how other countries will respond and what impact the tariffs will have on markets in the coming weeks.
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