Wall Street was expecting a TACO Tuesday. But Dow futures fall 250 points after Trump says he will set tariffs as high as 70%

Finance·Tariffs and tradeWall Street was expecting a TACO Tuesday

SEE FULL BIOThe New York Stock Exchange on Wednesday

Michael Nagle—Bloomberg via Getty ImagesWhile U

Were closed for the July 4 holiday, stock futures sank on Friday after President Donald Trump said he will start sending out letters informing countries of what tariffs they will face

That comes ahead of the July 9 expiration of a temporary pause on his “Liberation Day” tariffs

Stock futures tumbled on Friday after President Donald Trump said he will start sending out letters informing countries of what tariffs they will face

The Trump administration has been negotiating with top trade partners since the president put his “Liberation Day” tariffs on a 90-day pause

That reprieve will expire on Wednesday, July 9

So far, only a few limited trade deals have been announced, and negotiations with other countries were expected to require more time

So as the Wednesday deadline apached, Wall Street was expecting Trump to announce an extension to the tariff pause by Tuesday, reviving the so-called TACO trade that alludes to his history of pulling back from his maximalist threats. “We suspect that further last-minute concessions will be made to permit extensions for most countries, but a few of the ‘worst offenders’ may be singled out for punitive treatment,” analysts at Capital Economics predicted earlier this week. “ seem to be positioned for a fairly benign outcome, implying a risk of some near-term turbulence if that fails to materialise. ” That assumes Trump won’t risk a repeat of the epic April selloff that was triggered by his Liberation Day tariffs, and Capital Economics also warned such an assumption could be complacent

In fact, Trump has been saying for weeks that he prefers to unilaterally set tariffs with each country rather than engage in negotiations with all of them

But amid the absence of any letters, dismissed the risk of that tariffs could spike again

Still, Trump has kept beating the drum letters

In an interview that aired on Sunday, he was asked the tariff pause and the looming deadline. “I’d rather just send them a letter, very fair letter, saying, ‘Congratulations, we’re going to allow you to trade in the United States of America

You’re gonna pay a 25% tariff or 20% or 40% or 50%,’” Trump replied. “I would rather do that. ” When asked if the pause will not be ext, he said, “I don’t think I’ll need to because—I could—there’s no big deal. ” Trump further clarified his stance on the July 9 deadline, saying, “I’m gonna send letters

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