US equity futures were lower pre-bell Monday as traders assessed the tariff situation between the US and Canada after trade negotiations between the two countries failed.

Dow Jones Industrial Average futures were 0.1% lower, S&P 500 futures were down 0.2%, and Nasdaq futures were 0.5% lower.

Trade talks between the US and Canada failed and the US on Saturday imposed 50% tariffs on around $20 billion worth of imports from its neighbor in the north. Canadian Prime Minister Mark Carney said he planned to retaliate with tariffs starting Sept. 8. "Canada wants the benefits of being a State, without being one!!!" President Donald Trump said in a post Sunday on Truth Social.

US Treasury Secretary Scott Bessent is set to give details on 1 pm ET on Monday about "economic D-Day" against Iran, which would be "greatest financial offensive ever," Reuters reported, citing an opinion piece by the official published in Financial Times on Sunday.

Traders digested the latest round of earnings, with PDD (PDD) reporting lower Q2 non-GAAP earnings and higher revenue.

Nvidia (NVDA) and CrowdStrike (CRWD), among others, are expected to report financial results this week.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.7% at $91.07 per barrel and US West Texas Intermediate crude 2.2% lower at $85.15 per barrel.

The Chicago Fed national activity index for July is seen coming in at negative 0.05, compared with negative 0.02 previously, according to estimates compiled by Bloomberg.