U.S. stock futures were edging up 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 weren’t enough to derail market optimism.
Dow Jones Industrial Average futures were up 84 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures were also each up 0.2%.
“The timing of these copper and pharma tariff threats, coming alongside revived reciprocal tariff threats and the new bilateral trade deal deadline, suggests the Trump administration is trying to pressure the EU and other trade partners into faster deals,” wrote Mark Haefele, chief investment officer at UBS Global Wealth Management. “We caution against over-reacting in the near term given the lack of clarity on what policy will actually stick and on potential implementation dates.”
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.
“The abrupt policy shift caught many off guard, leading to a scramble to adjust positions and contributing to the price spike,” wrote Daniela Sabin Hathorn, a market analyst at Capital.com, in a research note.
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 re-imposition of the so-called reciprocal tariffs.
The yield on the benchmark 10-year Treasury note stood at 4.403% early on Wednesday, ticking down from the previous day.
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