The U.S. trade deficit narrowed in June on a sharp drop in consumer goods imports, and the trade gap with China shrank to its lowest in more than 21 years.

President Donald Trump said his administration is prepared to increase the tariffs it plans to impose on pharmaceuticals up to 250%.

Wall Street's main indexes swung to losses on Tuesday after data showed U.S. services activity unexpectedly stalled and investors considered the impact of U.S. trade policies on corporate profits.