Trump Administration Postpones Severe Tariffs Deadline Again, Wall Street Stocks Turned

Barry Adams
07 Jul, 2025
New York City

Stock market indexes wavered around the flatline as investors reviewed yet another change in tariff policy. 

The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite eased 0.5% after the Trump administration struggled to sign key deals before the self-imposed deadline on July 9. 

The U.S. president postponed the deadline to August 1, as key trading partners resisted the administration's plans for severe import duties. 

The Trump administration led investors to believe that key trading partners—China, Mexico, Canada, the European Union, and Japan—are eager to accept aggressive tariffs to gain access to the largest market in the world.

However, the administration's strong-arm tactics have so far yielded few results and caused severe business disruptions that are likely to drive at least 100,000 small firms out of business.

Last week, Wall Street indexes extended two months of gains to new record highs, but markets in Europe and Asia struggled after a week of choppy trading.

Optimism prevailed amid expectations that stability will return to international trade, and key U.S. trade partners will finalize agreements ending months of uncertainties and chaos unleashed by the Trump administration.

In the week ahead, investors in the U.S. are looking forward to the release of the consumer inflation expectation survey, monthly wholesale inventories, and jobless claims data.

The Fed’s minutes and balance sheet announcement and the monthly budget statement are also on schedule.

On the earnings front, markets expect results from Costco, Delta Air Lines, Levi Strauss, PriceSmart, WD-40, First Bancshares, AEHR Test Systems, Conagra Brands, and Progressive Corp.

 

U.S. Movers 

Tesla Inc. dropped 7.8% to $290.84, and the company's chief executive said he plans to start a new political party, which will further divide his attention from the business.