U.S. stock futures were edging down early on Wednesday as investors digested President Donald Trump’s latest tariff announcements.
A shock announcement on copper levies and a hardened stance on the deadline for trade deals has darkened the mood for the market slightly.
Dow Jones Industrial Average futures were down one point, or broadly flat. S&P 500 futures were down less than 0.1% and Nasdaq 100 futures were falling 0.1%.
Trump announced a 50% tariff on copper that could kick in by Aug. 1 or sooner. He also floated a levy of up to 200% on pharmaceutical products but said he would give companies up to 18 months to prepare. Semiconductor duties are also being studied, he said.
The three-month LME copper contract in London fell 1.5% to $9,642.50 a ton Wednesday morning, while front-month U.S. copper futures rose to an all-time high overnight.
“This announcement disrupted a months-long arbitrage strategy where traders imported copper into the U.S. in anticipation of higher prices, resulting in Comex inventories reaching their highest levels since 2018,” wrote Daniela Sabin Hathorn, a market analyst at Capital.com, in a research note. “The abrupt policy shift caught many off guard, leading to a scramble to adjust positions and contributing to the price spike.”
Trump also said Tuesday that there would be no more extensions for negotiations over trade deals past a new Aug. 1 deadline. The tougher position is likely to test both the stock and bond market’s relative calm over the reimposition of the so-called reciprocal tariffs.
The yield on the benchmark 10-year Treasury note stood at 4.399% early on Wednesday, ticking down from the previous day.