Overview

• The S&P 500, Nasdaq Composite and Dow Jones all fell on July 11 following Trump’s announcement, reversing the record highs reached just a day earlier.
• Trump’s 35% tariff on Canadian goods effective August 1 surpasses the previous 25% rate and comes with threats of further duties on other trading partners.
• Earlier this week, robust tech performance, double-digit airline stock gains and a drop in weekly unemployment claims propelled U.S. markets to all-time highs.
• Mexico’s Bolsa Mexicana de Valores opened lower and emerging-market currencies and bonds declined as investors reassessed trade risks.
• Market strategists say volatility is likely to persist as investors have largely delayed reacting to tariff warnings until implementation.