Markets are dropping off from record highs with Trump's tariffs in focus as key inflation data and earnings season loom.

S&P 500 contracts fell 0.4% while shares in Japan retreated 0.3% in a cautious start to the week. Treasuries dipped slightly while the yen strengthened.

U.S. stocks could finish the week on a high, reflecting the market's resilience despite the persistent tariff threat. President Donald Trump fired another salvo late Thursday, flagging a 35% tariff on imports from Canada through a letter.