Wall Street points lower after Trump's weekend tariff announcement

Wall Street is pointing lower before the opening bell with new tariffs announced for Europe and Mexico and as the unofficial start of earnings season get under way this week.

Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq each retreated by about 0.3% early Monday.

An announcement over the weekend by U.S. President Donald Trump that he plans 30% tariffs on goods from Mexico and the European Union had a modest immediate impact, as analysts said they expected progress toward trade deals before next month's deadline.

The EU is America's biggest business partner and the world's largest trading bloc. The U.S. decision will have repercussions for governments, companies and consumers on both sides of the Atlantic.

The tariffs could make everything from French cheese to German electronics more expensive in the U.S., while destabilizing economies from Portugal to Norway.

Markets in Europe are responding negatively, with Germany's DAX slumping 1% and and Paris's CAC 40 shedding 0.5%. The FTSE 100 in Britain — which is not an EU member and has already negotiated a trade deal with the U.S. — gained 0.4%.

The Trump administration had initially set Wednesday as a deadline for countries to make deals with the U.S. or face heavy increases in tariffs. But with just two trade deals announced since April, the window for negotiations has been been extended to Aug. 1.

In a matter of hours, some of the market's focus will turn toward banks. JPMorgan Chase, Wells Fargo and Citigroup are among the big U.S. banks due to report their results on Tuesday.

Shares of Kenvue jumped nearly 6% ahead of the opening bell Monday after the former division of Johnson & Johnson said CEO Thibaut Mongon is stepping down. Kenvue, the maker of Listerine and Band-Aid brands, continues with a strategic review of the company after splitting its consumer health division from the pharmaceutical and medical device divisions in 2021.

Bitcoin climbed to another all-time high, rising as much 3.6% early Monday before settling back around $121,315, according to CoinDesk.

Bitcoin's price has jumped amid bullish momentum across risk assets and coincides with Congress' Crypto Week that starts Monday. Lawmakers will debate a series of bills that could define the regulatory framework for the industry.

Chinese shares advanced after the government reported that exports rose last month as a truce in a tariffs war prompted a surge in orders ahead of the Aug. 1 deadline for reaching a new trade deal with Washington.

Elsewhere, Hong Kong's Hang Seng gained 0.3% to 24,091.45, while the Shanghai Composite index also was up 0.3%, at 3,519.65.

Tokyo's Nikkei 225 index slipped 0.3% to 39,459.62, while the Kospi in South Korea jumped 0.8% to 3,202.03.

In Australia, the S&P/ASX 200 edged 0.1% lower to 8,570.40.

Taiwan's benchmark lost 0.6%.

In energy markets, U.S. benchmark crude oil gained $1.05 to $69.50 per barrel, approaching the $70 level for the first time since a two-day rout in late June. Brent crude, the international standard, was up $1.03 at $71.39 per barrel.

The dollar ticked up to147.45 Japanese yen from 147.38 yen. The euro fell modestly to $1.1690 from $1.1692.