U.S. stocks edged lower Monday amid fears of an intensifying trade war after President Donald Trump slapped 30% tariffs on imports from Mexico and the European Union, continuing the volatile negotiations with his trading partners.

At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average dropped 80 points, or 0.2%, the S&P 500 index fell 10 points, or 0.1%, while the NASDAQ Composite slipped 12 points, or 0.1%.

Trump imposes 30% tariffs on Mexico, EU
Trump over the weekend released more letters outlining trade tariffs on major U.S. trading partners, this time imposing a 30% levy on goods from Mexico and the European Union, respectively.

This came after Trump over the past week imposed tariffs on Japan, South Korea, Canada, and Brazil, as well as a 50% duty on all copper imports.

Trump's tariffs will be effective from August 1, giving the targeted countries less than three weeks to reach a trade deal with Washington. He had postponed the deadline from July 9.

Speaking to reporters on Sunday, Trump said talks with South Korea and the EU were ongoing, with both countries seeking deals to avoid his steep tariffs.

Recent data showed U.S. customs duty collections surged to a record-high $113.3 billion gross in the first nine months of fiscal 2025 (the government's fiscal year ends on September 30). Treasury Secretary Scott Bessent said this figure could reach $300 billion by December, representing a major source of fiscal revenue for the government.

CPI inflation, bank earnings due
The focus this week, away from Trump's volatile trade policies, will be on consumer price index inflation data for June, due on Tuesday, as well as the new quarterly earnings season.

The June U.S. consumer price index is due on Tuesday, and the widely-watched inflation reading will offer Wall Street clues on when the Federal Reserve may next cut interest rates.

The CPI is expected to show a monthly rise of 0.3% in June, a rise from the 0.1% increase in the prior month, while the annual release is seen climbing to 2.6%, from 2.4% in May.

At its gathering in June, the U.S. central bank chose to leave borrowing costs unchanged at a target range of 4.25% to 4.5%, and Fed fund futures indicate a slim chance of a rate cut at the end-July meeting, but suggest easing in September is likely.

The new U.S. corporate earnings season kicks off in earnest this week, with major banks, including JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC), leading the way.

Results are also due from the likes of Netflix (NASDAQ:NFLX), Johnson & Johnson (NYSE:JNJ) and 3M Company (NYSE:MMM).

Elsewhere, Fastenal (NASDAQ:FAST) stock rose after the industrial supplies maker beat Wall Street estimates for second-quarter profit and revenue, helped by higher demand for its safety supplies.

Kenvue (NYSE:KVUE) stock gained after the consumer health company's CEO and board member Thibaut Mongon stepped down, its second big executive change amid a push by activist investors to boost performance.

Source: Investing.com