FX.co ★ US Futures Fall as Trump Announces 30% Tariff on EU, Mexico

U.S. stock futures fell on Monday following President Donald Trump's announcement of a 30% tariff on imports from the European Union and Mexico, effective August 1. This move heightens global trade tensions. Leaders from the EU and Mexico indicated their willingness to continue negotiations with the Trump administration this month, aiming to achieve a lower tariff rate. Investors are also exercising caution in anticipation of an important U.S. inflation report due this week, which may shed light on the economic effects of the newly imposed tariffs. Additionally, the focus is shifting to the upcoming second-quarter earnings season, with leading corporations such as JPMorgan, Wells Fargo, Johnson & Johnson, United Airlines, and Netflix expected to report their financial results soon. On the policy side, economic adviser Kevin Hassett captured attention by asserting that President Trump "can fire" Federal Reserve Chair Jerome Powell "if there’s cause," introducing another layer of uncertainty for investors.