Wall Street Futures sink as Trump slaps 35% tariff on Canada, hints at broader trade crackdown

Bitcoin rocketed past $118,000, driven by $1.18 billion in ETF inflows, signaling robust risk appetite in crypto markets.

US stock futures took a hit on Friday, July 11, 2025, as President Donald Trump rolled out a 35 percent tariff on Canadian imports, effective August 1, blaming fentanyl inflows, and flagged 15 to 20 percent blanket tariffs on most trade partners, up from the existing 10 percent.

This follows a 50 percent levy on copper and Brazilian goods, jolting markets after Thursday’s record highs for the S&P 500 and Nasdaq Composite, fueled by Nvidia’s $4 trillion valuation milestone.

Dow Jones Industrial Average futures shed 271 points, or 0.6 percent, S&P 500 futures fell 0.6 percent, and Nasdaq 100 futures slipped 0.5 percent. Premarket trading turned sour, with tech giants like Nvidia retreating and JPMorgan, down 1 percent, dragging banks lower.

Trump hinted at easing the Canadian tariff if fentanyl cooperation improves, while Canadian Prime Minister Mark Carney stressed joint efforts to curb the crisis. The iShares MSCI Canada ETF slid 0.7 percent premarket. The US dollar gained ground, pressuring the Canadian dollar and Brazilian real. Bank of America warns of tariff-fueled inflation, projecting core PCE at 3.6 percent by Q4 2025, overshooting the Fed’s 2 percent target. Federal Reserve minutes suggest contained tariff-related price pressures but pencil in 2025 rate cuts if trade tensions cool.

Globally, Japan’s Nikkei 225 edged up 0.51 percent, lifted by tariff relief hopes, with exporters like Toyota shining.

India’s Sensex slumped 1.4 percent after the RBI held rates, though an IPO frenzy looms for H2 2025.

China’s markets sagged on weak PMI data, pulling Brent crude down 3.1 percent.

Singapore’s index hit a record 4,005.39, riding capital inflows.

In Europe, German inflation eased to 2.0 percent in June, but the STOXX 600 fell 0.4 percent as tariff fears loomed, int he last trading session.

Bitcoin rocketed past $118,000, driven by $1.18 billion in ETF inflows, signaling robust risk appetite in crypto markets.

Investors are gearing up for Q2 earnings, starting with Delta Air Lines, which will test corporate strength amid trade turbulence. The upcoming PCE price index could sway Federal Reserve moves, with Chair Jerome Powell cautious on rate cuts due to tariff-driven inflation risks. With trade talks, earnings, and inflation data in focus, markets face a volatile road ahead.