US open: Stocks lower after Trump slaps 35pc tariff on Canadian imports

(Sharecast News) - Major indices headed south early on Friday after Donald Trump announced a new 35% tariff on Canadian imports. As of 1450 BST, the Dow Jones Industrial Average was down 0.62% at 44,373.20, while the S&P 500 shed 0.54% to 6,246.80 and the Nasdaq Composite came out of the gate 0.43% weaker at 20,542.78.

The Dow opened 277.44 points lower on Friday, reversing gains recorded in the previous session.

Investors shrugged off tariff concerns on Thursday, after Trump announced a 50% tariff on imported copper, as well as a 50% tariff on Brazil, partly in retaliation for its ongoing trial against former president Jair Bolsonaro for his role in an alleged attempt to overturn the South American nation's 2022 election results.

However, Trump later announced that the White House would be hitting its northern neighbour with a 35% tariff on goods, effective from 1 August, despite warming relations between the two countries, potentially shattering hopes of striking a trade deal by 21 July. Trump threatened to raise the tariffs if Canada were to retaliate and also accused Canada of contributing to America's fentanyl crisis, due to their "failure to stop" the drugs from "pouring" into the country.

"If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter," said Trump, who also complained about tariffs and trade barriers causing "unsustainable" trade deficits against the US, claiming they pose a threat to the US economy and its national security.

Trump later said that a letter could be sent to the European Union as soon as Friday.

In the corporate space, iconic denim maker Levi Strauss traded higher after beating both top and bottom line expectations and raising FY sales guidance, saying it anticipates absorbing some tariff costs for now, while discount retailer PriceSmart posted better-than-expected quarterly revenue and earnings.

No major data points were slated for release on Friday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

American Express Co. (AXP) $325.24 2.49% McDonald's Corp. (MCD) $298.53 1.83% Goldman Sachs Group Inc. (GS) $708.89 1.80% JP Morgan Chase & Co. (JPM) $288.19 1.78% Intel Corp. (INTC) $23.82 1.58% Caterpillar Inc. (CAT) $408.33 1.53% Nike Inc. (NKE) $74.62 1.44% Apple Inc. (AAPL) $212.41 1.40% Dow Chemical Co. (DOW) $30.21 1.31% Amgen Inc. (AMGN) $300.37 1.04%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $263.88 -2.57% Walmart Inc. (WMT) $94.87 -2.01% Verizon Communications Inc. (VZ) $42.01 -1.36% Unitedhealth Group Inc. (UNH) $299.32 -1.12% International Business Machines Corporation (CDI) (IBM) $287.43 -0.93% Visa Inc. (V) $355.77 -0.53% Boeing Co. (BA) $226.09 -0.23% Dowdupont Inc. (DWDP) $0.00 0.00% Microsoft Corp. (MSFT) $501.48 0.07% Travelers Company Inc. (TRV) $255.95 0.26%

S&P 500 - Risers

Delta Airlines Inc. (DAL) $56.81 11.99% United Airlines Holdings Inc (UAL) $91.67 11.72% American Airlines Group (AAL) $12.94 10.32% Alaska Air Group Inc. (ALK) $54.18 8.95% Nektar Therapeutics (NKTR) $25.10 8.92% Southwest Airlines Co. (LUV) $37.35 8.14% Estee Lauder Co. Inc. (EL) $92.10 6.34% Norwegian Cruise Line Holdings Ltd (NCLH) $23.15 5.42% Albemarle Corp. (ALB) $74.27 4.92% Illumina Inc. (ILMN) $100.05 4.19%

S&P 500 - Fallers

Autodesk Inc. (ADSK) $286.11 -9.63% Fortinet Inc. (FTNT) $100.20 -7.50% AES Corp. (AES) $12.41 -6.41% Cognizant Technology Solutions Corp. (CTSH) $76.73 -5.19% Intuit Inc. (INTU) $747.90 -4.41% ConAgra Brands Inc (CAG) $19.49 -4.37% Dxc Technology Company (DXC) $15.12 -3.82% Mosaic Company (MOS) $35.90 -3.70% Monster Beverage Corp (MNST) $59.17 -3.44% Adobe Systems Inc. (ADBE) $371.43 -3.16%

Nasdaq 100 - Risers

American Airlines Group (AAL) $12.94 10.32% Tesla Inc (TSLA) $309.87 4.32% Illumina Inc. (ILMN) $100.05 4.19% Align Technology Inc. (ALGN) $204.48 3.77% Dollar Tree Inc (DLTR) $108.37 3.71% Incyte Corp. (INCY) $70.33 3.44% Wynn Resorts Ltd. (WYNN) $111.93 3.04% eBay Inc. (EBAY) $77.23 2.67% Vertex Pharmaceuticals Inc. (VRTX) $479.53 2.49% Synopsys Inc. (SNPS) $566.19 2.48%

Nasdaq 100 - Fallers

Autodesk Inc. (ADSK) $286.11 -9.63% Cognizant Technology Solutions Corp. (CTSH) $76.73 -5.19% Workday, Inc. (WDAY) $229.30 -4.85% Intuit Inc. (INTU) $747.90 -4.41% Mercadolibre Inc. (MELI) $2,402.10 -3.46% Monster Beverage Corp (MNST) $59.17 -3.44% Adobe Systems Inc. (ADBE) $371.43 -3.16% T-Mobile Us, Inc. (TMUS) $228.15 -2.79% NetEase Inc. Ads (NTES) $127.58 -2.65% Take-Two Interactive Software Inc. (TTWO) $235.33 -2.56%