Futures higher as Trump’s new tariffs take effect - what’s moving markets

Investing.com - U.S. stock futures point up as President Donald Trump’s latest tariff barrage takes effect. Trump’s move to widen his levies and upend longstanding global trading networks spares few countries. Meanwhile, Apple pledges to invest more in U.S. manufacturing as Trump suggests that a 100% duty on semiconductor imports could soon be coming -- but hints at exemptions for firms promising to boost their domestic production operations. Elsewhere, Toyota (NYSE:TM) slashes its full-year operating profit forecast due to the tariffs.

1. Futures higher

U.S. stock futures ticked higher on Thursday after Trump’s new elevated tariffs on a host of trading partners came into effect, while investors kept tabs on relatively solid earnings from Corporate America.

By 02:45 ET (06:45 GMT), the Dow futures contract had risen by 34 points, or 0.1%, S&P 500 futures had climbed by 17 points, or 0.3%, and Nasdaq 100 futures had gained 67 points, or 0.3%.

The main averages on Wall Street rose in the prior session, buoyed by strong quarterly reports, including upbeat returns from burger giant McDonald’s (NYSE:MCD). Apple shares (NASDAQ:AAPL) also rallied, underpinning the advances in the indices, on news that it would invest more in domestic manufacturing (more below).

Following Wednesday’s trading, the benchmark S&P 500 has recovered from a slump late last week sparked by soft monthly employment figures.

"The easiest explanation is that nothing happened to alter the current trend (which has been to the upside); the burden of proof is on the bears to shift the market’s mood, and (so far) they’ve failed to do so," analysts at Vital Knowledge said in a note.

Expectations that the weak jobs numbers will spur interest rate cuts by the Federal Reserve has also bolstered sentiment, they added. This week, some Fed policymakers have signaled a willingness to slash rates at the central bank’s upcoming meeting next month to address the cooling labor market, even as worries remain that the tariffs could fuel inflation.

2. Trump tariffs take effect

Trump’s heightened tariffs on more than 90 countries snapped into effect after midnight Eastern time, in another step forward for the White House’s ongoing drive to overhaul global trade.

Levies of 15% are now in effect for nations like Bolivia and Nigeria, while a 20% import tax has been slapped others, like Taiwan. Brazil and India are facing even higher tariffs in response to Trump’s displeasure with local policies -- in Brazil’s case, the prosecution of his political ally Jair Bolsonaro and, in India’s, the purchase of Russian oil.

A slew of other trading partners, including Britain, the European Union, Japan, South Korea and Vietnam, notched preliminary trade deals with Washington prior to the implementation of the new duties, giving them tariff rates ranging between 15% to 20% in exchange for opening their markets to American goods and, in some cases, pledging to invest in the United States.

Meanwhile, a 30% levy on Chinese goods is still in effect following a trade truce between Washington and Beijing earlier this year, but the agreement is set to expire on August 12.

Trump also threatened to place a 100% levy on all semiconductor imports, as part of a bid to reshore domestic chip manufacturing. However, he mentioned that companies who promise to invest and build in the U.S. will be exempted.

3. Apple’s fresh U.S. investment commitment

Amid this caveat, Apple CEO Tim Cook joined Trump at the White House to unveil a commitment to devote $100 billion in additional investment into the United States.

Cook particularly highlighted the California-based iPhone maker’s drive to increase its American manufacturing presence and bring much of its vast supply chain back to the U.S. Cook said he was taking Trump’s call for Apple to reshore its operations "very seriously."

Shares in Apple were higher by more than 2% in extended hours trading on Thursday after jumping by over 5% a day before.

Apple previously announced earlier this year that it was planning to plug $500 billion in fresh investments into the U.S., adding that it would hire some 20,000 workers over the next four years and construct a new plant in Texas focused on the creation of the machines needed to undergird its artificial intelligence ambitions.

Still, Apple has yet to bring all the manufacturing processes of its flagship iPhone to the U.S., despite Trump’s claim in May that he would put a 25% tariff on imported smartphones. Instead, Apple has shifted some of its iPhone production from China to Asian nations like India and Thailand.

4. Tariffs fuel Toyota operating profit forecast cut

Japan-listed shares in Toyota slipped after the carmaking giant slashed its annual operating profit outlook by 16%, citing an anticipated cost of $10 billion from U.S. tariffs on imported vehicles, increased input expenses and a stronger yen.

The world’s largest auto manufacturer said it now sees the bottom-line figure for its fiscal year ended in March 2026 coming in at 3.2 trillion yen, compared to a prior estimate of 3.8 trillion yen.

U.S. duties are expected to bring down income by 1.4 trillion yen -- or roughly $9.5 billion -- during that time. It had previously estimated that the impact from the levies would stand at 180 trillion yen.

The reduction -- along with a slide in Toyota’s first-quarter operating profit -- underlined the pressure the company and other foreign car companies are feeling from Trump’s sweeping and aggressive trade agenda.

Yet demand has been resilient. Toyota posted record global sales for the first half of the calendar year, while its operating profit in the April to June quarter of 1.17 trillion yen topped analysts’ expectations.

5. Chinese export growth accelerates

China’s exports rose at a faster pace in July despite a drop in trade with the U.S., signaling that the tariffs have yet to heavily dent a key portion of the world’s second-biggest economy.

Exports from China increased by 7.2% last month compared to a year ago on a dollar-denomiated basis, after jumping by 5.8% in June, according to data from the General Administration of Customs on Thursday.

This came even as outgoing shipments to the U.S. slipped by 22% year-on-year. In June and May, the figure declined by 16% and 35%, respectively.

The numbers suggest that, despite worries that a now-eased tit-for-tat fight with the U.S. would weigh on exports, China has been able to sustain the sector by sending products to other countries across the world. It has been a crucial trend, underpinning economic activity in a country grappling with tepid consumer demand and a protracted property crisis.