The Dow Jones (DJIA) is set to open Monday’s trading session in the red amid investor concerns about the implications of President Trump’s updated tariffs. This morning, Trump said that the U.S. has been “ripped off on TRADE (and MILITARY!), by friend and foe, alike, for DECADES,” adding that it has cost the country “TRILLIONS OF DOLLARS.”
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Last week, Trump imposed a 35% tariff on Canadian imports and a 50% tariff on Brazilian imports. Over the weekend, he announced tariffs on two more U.S. trading partners.
Trump Announces New Tariffs on Mexico, EU
Trump will enact 30% tariffs on Mexico and the European Union, effective as of August 1. Products transshipped through the two countries will be subject to an even higher tariff. The EU’s previous tariff rate, announced on April 2, was 20%. Mexico had a 0% tariff rate.
In 2024, the U.S. had a $235.6 billion goods trade deficit with the EU and a $171.8 billion goods trade deficit with Mexico.
Trump’s tariffs are paying off, as U.S. annual tariff revenue crossed $100 billion for the first time in June with three months of collections still remaining in the fiscal year.
The Dow Jones ETF (DIA) is down by 0.26% at the time of writing.
