US stocks close little changed despite Trump's tough tariff talk. Copper hits record high
- - - US stocks close little changed despite Trump's tough tariff talk. Copper hits record high
Medora Lee, USA TODAY July 8, 2025 at 12:08 PM
U.S. stocks closed barely changed even after President Donald Trump took a harder stance on his Aug. 1 "reciprocal" tariff deadline, threatened up to 200% tariffs on pharmaceuticals and slapped a 50% tariff on copper imports that sent copper prices soaring to an all-time high.
Trump reportedly said durng a cabinet meeting that he might consider tariffs of up to 200% on pharmaceuticals and send a letter to the European Union within the next two days threatening to impose steep tariffs if it doesn't reach a trade deal with the U.S
Earlier in the day, in a social media post, Trump said there won't be any change or extension to the Aug. 1 date, which briefly depressed stocks.
Originally, Trump suggested some flexibility for negotiations and delays, saying the notifications to 14 countries of tariff levels if no deal was struck were “not 100% firm." The 14 countries include Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Laos, Malaysia, Myanmar, Serbia, South Africa, South Korea, Thailand and Tunisia.
The blue-chip Dow dropped 0.37%, or 165.60 points, to 44,240.76; the broad S&P 500 lost 0.07%, or 4.46 points, to 6,225.52; and the tech-laden Nadaq edged up 0.03%, or 5.95 points, to 20,418.46. The benchmark 10-year yield rose to 4.399%.
Stocks had declined at the start of the week when Trump threatened an additional 10% tariff on countries that align with the “Anti-American policies” of the BRICS nations which include Brazil, Russia, India and China and sent tariff letters to Japan and South Korea.
Still, "trade-war headlines are regaining momentum, but that doesn’t mean we’re in for a repeat of late March and early April," said eToro U.S. Investment Analyst Bret Kenwell.
Bank of America equity and quant analyst Savita Subramanian raised her year-end S&P 500 target to 6,300 from 5,600 and launched a 12-month target of 6,600 on "the resilience of Corporate America." She noted that corporate transparency remains intact and earnings per share uncertainty is still near post-pandemic lows.
"If none of these 14 countries manage to seal a preliminary trade deal (and assuming Trump doesn’t delay implementation for another month) then the effective tariff rate on U.S. imports would rise from 15.5% to 17.3%," said Paul Ashworth, chief North America economist at Capital Economics, in a note. "That would push it even further above 20 century norms – it was 2.5% last year – but given the very muted impact of tariffs on U.S. consumer prices up to now and that the tariff revenues are now being recycled thanks to the Republican Megabill that Congress just passed, the fallout should be manageable."
Economists also noted the European Union, India, Taiwan, Brazil, Turkey and Australia didn't yet receive tariff letters. Some speculated that these countries could be close to deals. European Commissioner Olof Gill said earlier the EU still aimed for a deal by the July 9 deadline.
Consumers also have been feeling better about inflation. The New York Federal Reserve's consumer survey showed respondents expect inflation a year from now at 3%, the same as in January before Trump's initial April tariff announcement and down from the peak of 3.6% in March and April.
NEW YORK, NEW YORK - JULY 07: Traders work on the floor of the New York Stock Exchange (NYSE) on July 07, 2025, in New York City. Most major markets were down in morning trading as investors show concern about Donald Trump's tariff policy, which could affect a number of imports this week. (Photo by Spencer Platt/Getty Images)Cryptocurrency
Tesla chief executive Elon Musk said his new America Party will support bitcoin.
Separately, Nasdaq-listed real estate firm Murano said it bought 21 bitcoin recently as it begins to accumulate the digital currency. It also entered an equity agreement of up to $500 million with funds primarily to buy bitcoin.
Bitcoin was last up 0.44% at $108,774.
Corporate news -
Amazon's prime day sales begin and run through July 11. This is the first year the event has run for four days instead of two. Shares declined 1.84%.
Solar stocks like SunRun and First Solar declined after Trump issued an executive order that would enforce the halt to clean-electricity tax credits faster than expected. SunRun shares fell11.43% and FirstSolar stock shed 6.54%.
Honeywell said it would evaluate strategic alternatives for two of its businesses that serve the transportation and logistics industries. Shares edged up.
Boeing said it delivered 60 planes to customers in June, bringing second-quarter deliveries to 150 and the highest number since 2023. Shares closed fractionally higher.
(This story was with new information.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: US stocks end little changed but copper jumps to record on 50% tariff
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