Stocks STUMBLE as Tariff Deadline Nears!

As the 90‑day tariff pause approaches its July 9 deadline, markets are on edge, with stocks slipping, the dollar weakening, and investors scrambling to price in looming trade risks.

At a Glance

• The tariff truce triggered an 11% jump in MSCI World and 10% rise in S&P 500 since April.
• The dollar index has plunged about 11% this year versus major currencies.
• Trump plans to notify trading partners of new tariffs between 10–70%, to be enacted by August 1.
• U.S. equity futures and Asian markets fell early July 4 on renewed trade threat fears.
• Gold has rallied roughly 26% in 2025, outperforming bitcoin and tech stocks as a safe-haven.

Rally On Pause As Deadline Looms

Global markets surged after the U.S. lifted tariffs earlier this year, but optimism is fading ahead of the July 9 deadline. The 90‑day pause drove a sharp recovery—MSCI World rose over 11% and the S&P 500 climbed more than 10%—but gains are at risk as new U.S. tariffs ranging from 10% to 70% are expected to return by August 1. The dollar has already shed 11% this year, undermining foreign investor confidence. On July 4, S&P futures slipped and Asia-Pacific equities faltered as investors grew anxious.

Watch a report: Market Talk: Stocks to suffer if EU retaliates with tariffs

Financial Shifts & Safe-Haven Surge

Investor sentiment has shifted toward safer assets. Gold is up approximately 26% in 2025—surpassing bitcoin and tech stocks—while U.S. Treasury yields continue to ease. The dollar has weakened against both the euro and yen amid growing policy uncertainty. Analysts warn that the outcome of tariff talks could either stabilize or rattle markets depending on whether a trade compromise emerges by next week.

Watch July 9 For Trade Verdict

Attention now turns to whether the U.S. can strike last-minute trade pacts with key partners. Provisional deals with China, Vietnam and the U.K. have been announced, but negotiations with Japan, India, and the EU remain unresolved. Treasury sources say notification letters for new tariffs are ready and could be dispatched by July 9, though extensions into September are being considered. Retaliatory measures are already surfacing: India filed WTO objections this week over potential U.S. auto duties.

While the Biden administration touts the pause as a success, traders remain cautious. A decision to reinstate tariffs could upend equity momentum, derail currency stability, and provoke new geopolitical risks—making the next few days a high-stakes countdown for global markets.