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The Dow Jones Industrial Average (DJIA) sank on Monday, falling back below key technical levels. The Trump administration added fresh tariff threats against key US trading partners to paper over another delay of previously imposed tariffs, sparking a new bout of risk aversion among investors who are growing weary of riding the whiplash tariff roller coaster.

Tariff buildup deepens despite another delay

The July 9 deadline for President Trump’s reciprocal tariffs, originally announced and delayed in early April, has now been pushed to the beginning of August as the Trump administration struggles to secure advantageous trade concessions from the rest of the planet. Outside of some preliminary agreements with China and the United Kingdom, and a small-scale trade arrangement with Vietnam, very little progress has been made on the Trump team’s mandate to squeeze trade deals out of 90 countries in 90 days.

Donald Trump announced the delivery of trade demand letters to countries including South Korea and Japan, warning that he intends to impose an additional 25% tariff on all US imports from both countries beginning on August 1 if they don’t play ball on trade negotiations. US Commerce Secretary Howard Lutnick also announced on Sunday that the Trump administration would be having a busy week, cautioning that several trade announcements would be made in the coming days. Commerce Secretary Lutnick opted not to reveal the names of any specific countries the US is close to inking trade deals on, a pattern that has repeated itself on a weekly basis since April.

Dow Jones price forecast

The Dow Jones’s backslide on Monday has dragged the major equity index back below 44,500 following a multi-week grind back above the key technical level. The Dow Jones is still holding on the high side of the 44,000 handle, and price action is still tilted firmly into the bullish side despite a near-term pullback.

The Dow is still up 21% from April’s post-tariff bottom near 36,600, and the next technical target is new all-time highs above 45,000. On the low side, near-term technical support is priced in at the 50-day Exponential Moving Average (EMA) parked just below 43,000.

Dow Jones daily chart

(Click on image to enlarge)

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