U.S. stocks closed lower on Friday, capping a losing week for the S&P 500 as renewed fears of a global trade war rattled investors. The market decline followed President Donald Trump’s announcement of a 35% tariff on Canadian imports beginning August 1.

At the close, the Dow Jones Industrial Average dropped 279 points (0.6%), while the S&P 500 slipped 0.4% and the NASDAQ Composite shed 0.2%.

Trump Imposes 35% Tariff on Canada, Heightens Trade Tensions

Both the S&P 500 and NASDAQ retreated from record highs after Trump unveiled a letter detailing new tariffs on Canadian goods, effective next month. These duties add to existing sector-specific tariffs and aim, according to the president, to pressure Ottawa into curbing fentanyl trafficking into the U.S.

Trump also accused Canada of unfair trade practices, citing already high Canadian tariffs on various American sectors.

This week, the administration issued similar letters targeting other major economies: a 25% tariff on goods from South Korea and Japan, and a 50% duty on Brazilian imports. Brazil warned it would respond with equal measures if the U.S. proceeds.

Trump added that the European Union could also be hit with tariff notices as soon as Friday, casting doubt over the direction of trade negotiations with Washington.

---

Banks to Kick Off Q2 Earnings Season

Looking ahead, the second-quarter earnings season begins next week. Major banks including JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and Bank of New York Mellon (BK) are all scheduled to report Tuesday.

In individual stock moves, Levi Strauss (LEVI) gained after raising its sales outlook, signaling it can absorb some of the tariff impact in the near term.

PENN Entertainment (PENN) tumbled more than 7% amid concerns over slowing growth, following weaker-than-expected gaming revenues in Iowa and Indiana.

---

All Eyes on Next Week’s Inflation Data

Friday’s economic calendar was light, but investors are already looking ahead to next week’s Consumer Price Index (CPI) report for June, which is expected to show a 0.3% monthly increase.

Minutes from the Fed’s June meeting revealed only a few officials were open to cutting interest rates this month. Most remained cautious, citing potential inflationary pressures stemming from the new tariffs.

Fed fund futures currently price in a low probability of a July rate cut, though a move in September appears increasingly likely.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.