Dow futures drop nearly 200 points after Trump slaps 30% tariff on Mexico and the EU: Live updates

U.S. equity futures slid on Sunday evening as Wall Street contends with continued tariff risks and second-quarter earnings on deck.

S&P 500 futures lost 0.4%, while Nasdaq 100 futures dropped 0.5%. Futures for the Dow Jones Industrial Average fell 183 points, or 0.4%.

On Saturday, President Donald Trumpsaid the U.S. will impose 30% tariffs on the European Union and Mexico starting Aug. 1. Leaders of the EU and Mexico indicated that they intend to keep talking with the Trump administration this month in an attempt to agree on a lower rate.

The announcement comes ahead of inflation readings this week, which will give investors a better sense of how the Trump tariffs already in effect are being felt throughout the economy.

“Inflation is here with tariffs. It's just a question of who eats it. Those companies that have pricing power means that consumers are going to eat it. Those companies that don't have pricing power means that companies are going to eat it via a cut in their profit margin,” Peter Boockvar, chief investment officer at Bleakley Financial Group, said Friday on CNBC's “Fast Money.”

Sunday's move in futures comes after a negative week for stocks, although the major averages are still near record highs. The S&P 500 dipped 0.31%, its first negative week in three. The Dow fell 1.02%, breaking a three-week win streak.

Meanwhile, the Nasdaq Composite inched down 0.08%, snapping a three-week winning streak.

Earnings season is set to ramp up later in the week. Major banks, including JPMorgan Chase, will deliver quarterly reports starting Tuesday.

Another potential factor for investors to monitor is the rift between the Trump administration and the Federal Reserve. On Sunday, National Economic Council Director Kevin Hassett told ABC News that President Trump can fire Fed Chair Jerome Powell “if there's cause.”

Trump officials are probing the costs of renovation of the Federal Reserve's main building in Washington, D.C., while the president has repeatedly criticized Powell for not lowering interest rates. The central bank has pushed back against some of the criticisms of the renovation project.

S&P 500, Nasdaq Composite with 0.5% of record highs

Here is how the major averages performed last week and where they sit in terms of their record highs:

The S&P 500 fell -0.31% for its first negative week in 3

• The index is -0.48% off its record high

The Nasdaq Composite fell -0.08%, breaking a three-week win streak

• The index is 0.34% off its record high

The Dow fell -1.02%, snapping a three-week win streak

• The average is 1.56% off its record high.

Trump says Mexico, EU will face 30% tariff on Aug. 1

President Donald Trump on Saturday said that Mexico and the European Union will face a 30% tariff rating starting Aug. 1. This continues the trend of Trump releasing letters announcing tariff rates unilaterally, and hits two of the United States' biggest trading partners.

Leaders of both Mexico and the EU indicated that they plan to continue talking to the Trump administration ahead of Aug. 1 and are looking for a lower rate. European Commission President Ursula von der Leyen said Sunday the EU would delay its own tariffs, which were set to take effect on Monday, the Associated Press reported.

Stock market futures open lower

Equity futures were lower when trading resumed on Sunday evening in New York. Dow futures were down 200 points, or about 0.5%.