Stocks fell at the open Thursday as investors reacted to renewed trade tensions after President Donald Trump threatened to impose unilateral tariffs on key U.S. trading partners.
The Dow Jones Industrial Average dropped 230 points, or 0.54%, to 42,634.95 after the bell. The S&P 500 slid 0.28%, while the Nasdaq dipped 0.24%.
The small-cap Russell 2000 also declined, losing 0.38%.
Meanwhile, the CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” spiked more than 5%, signaling rising investor unease.
The market downturn came hours after Trump, speaking Wednesday evening at the John F. Kennedy Center for the Performing Arts in Washington, confirmed that his administration intends to send letters to US trade partners in the coming weeks to formally establish new tariff terms.
“We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” Trump said.
“At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it.”
Trump’s remarks come ahead of a July 9 deadline, when the White House is expected to move forward with increased tariffs on a wide range of imports unless new trade agreements are secured.
The president has previously floated similar timeframes, sometimes delaying or altering plans, but Thursday’s selloff suggests investors are bracing for concrete action.
In April, Trump proposed across-the-board tariff hikes but put them on hold for 90 days following a steep market decline. Since then, the administration has finalized only a narrow trade framework with the United Kingdom and a temporary tariff truce with China.
That truce is now under pressure. Officials from Washington and Beijing met in London earlier this week for high-stakes negotiations after each side accused the other of breaching terms.
Trump said Thursday that the US–China framework would include rare earth and magnet exports from China, in exchange for the US loosening restrictions on Chinese student visas.
When asked whether he might extend the July 9 deadline to allow more time for deals, Trump said, “But I don’t think we’re gonna have that necessity.”
Trump has shifted his strategy away from blanket multilateral negotiations and is now focused on bilateral deals with countries such as India, Japan, South Korea and members of the European Union.
Still, Commerce Secretary Howard Lutnick noted Thursday that negotiations with the EU have been difficult, pointing to the complexity of dealing with a 27-nation bloc. “It’s frustrating,” he said.
With Trump reaffirming his tariff plans and few trade deals finalized, Thursday’s sharp losses suggest markets are now pricing in the real possibility of a broader economic confrontation in the weeks ahead.
The Post has sought comment from the White House.
