Stocks tumble after Trump unveils sweeping new tariffs

Trump signed an executive order late Thursday slapping tariffs on 70 countries.

U.S. stocks tumbled in early trading on Friday, just hours after President Donald Trump signed an executive order slapping new tariffs on dozens of countries. A weak jobs report worsened investor jitters, revealing a slowdown of hiring over recent months as Trump's previous tariffs took hold.

The Dow Jones Industrial Average dropped 615 points, or 1.3%, while the S&P 500 dropped 1.6%. The tech-heavy Nasdaq declined 2.1%.

Trump's executive order late Thursday laid out rates to be applied against nearly 70 countries, ranging from 10% to 41% in what a Trump administration official hailed as the beginning of a "new system of trade." The new duties are now set to go into effect on Aug. 7.

The tariff rates resemble reciprocal tariffs that were placed on more than 90 countries on April 2, though there are some differences. Those reciprocal tariffs were delayed 90 days when they set off a major stock selloff and a spike in bond yields.

In early July, Trump delayed the tariffs again, setting a deadline of Aug. 1.

The tariffs announced late Thursday came hours before a jobs report on Friday morning showed a marked cooldown in hiring as Trump's prior levies filtered through the economy in recent months.

The U.S. added 73,000 jobs in July, which came in well below an average of 130,000 jobs jobs added each month this year, according to data from the U.S. Bureau of Labor Statistics, or BLS.

The report also provided new estimates for two previous months, significantly dropping the government's estimate of jobs added in May and June. In May, the U.S. added 19,000 jobs, much lower than a previously estimated total of 139,000 jobs, the BLS said. While in June, the economy added just 14,000 jobs, revising downward a previous estimate of 147,000 jobs.

"Today’s jobs report was underwhelming as it missed economists’ expectations, but it’s the stark revisions to the prior two months that really stands out," Bret Kenwell, U.S. investment analyst at eToro, told ABC News in a statement.

The selloff on Friday appeared to interrupt resilient performance of the stock market going back months. After some market volatility in the spring, investors have largely shrugged off Trump's tariffs.

The Dow has climbed 2% this year, while the S&P 500 has jumped 6%. The Nasdaq has increased 8%.

Alongside a hotter-than-expected inflation reading on Thursday, the jobs data "may have thrown some cold water on the rally," Kenwell said.