Trump’s Tariffs Send U.S. Stocks Plunging as Import Taxes Hit 1930s Highs

President Trump's sweeping import duties spurred a sharp sell-off in U.S. markets, with S&P 500 futures tumbling 0.9% and the Dow futures off by a similar margin. At Thursday's close, the S&P 500 slid 0.4%—its third straight decline—while the Dow fell 0.7% and the Nasdaq edged down.

• Healthcare shares led the retreat, as UnitedHealth Group plunged 6.2% and Bristol-Myers Squibb dropped 5.8%.

• Traders are bracing for Friday's nonfarm payrolls data and warning that higher import taxes—now at levels unseen since the 1930s—could squeeze corporate profits and consumer spending.

A federal appeals court on Thursday probed President Trump's legal authority to impose broad 10% tariffs under the International Emergency Economic Powers Act (IEEPA), pressing Justice Department lawyer Brett Shumate on why Congress never explicitly referenced tariffs in the statute. Judges cited the major questions doctrine and pointed to other laws—like Section 122 of the 1974 Trade Act—that explicitly grant tariff powers to the president. Meanwhile, Trump signed a separate order late Thursday raising levies on imports from 66 countries, the EU, Taiwan and the Falkland Islands but pushed the start date back seven days, injecting further uncertainty into U.S. trade policy.

President Trump late Thursday signed an order boosting U.S. import duties on Canadian goods to 35% from 25%, effective Friday, citing Ottawa's insufficient cooperation on intercepting fentanyl traffickers.

Key points:

• Exemptions: Products covered under the USMCA remain duty-free.


• Transshipment: Non-USMCA goods routed through Canada face a 40% levy.

Canadian reaction: Prime Minister Mark Carney expressed disappointment, noting Canada accounts for only 1% of U.S. fentanyl imports and vowed to diversify export markets while safeguarding jobs.

President Trump has turned his fire on key Senate Republicans, accusing Sen. Chuck Grassley of being a "RINO" and calling on followers to "light up" his office after Grassley defended the blue-slip tradition. Two days later, Trump slammed Sen. Josh Hawley for joining Democrats in blocking a review of Speaker Pelosi's stock trades—a measure Hawley says wouldn't affect the president and takes effect in 2029.

Rank-and-file senators from both wings of the GOP are warning that these public feuds risk undermining party unity and Senate prerogatives as lawmakers consider whether to push through judicial nominations and other priorities before the August recess.

Tens of thousands of Americans are expected to take part in "Rage Against the Regime" demonstrations on Saturday, August 2, mobilizing against President Trump's immigration enforcement, cuts to federal agencies and lack of transparency over Jeffrey Epstein.

Organized by the grassroots 50501 Movement, these peaceful protests follow summer actions like the 2,100-site "No Kings" rallies and 1,600 "Good Trouble" events.

In Iowa, three separate gatherings are slated for Decorah, Des Moines and Manchester— including a Capitol rally from 11 a.m. to 1 p.m. with a school-supply and hygiene-item drive—underscoring local efforts to channel collective anger into nonviolent resistance.