Shares closed down considerably on Monday after President Donald Trump announced steep tariffs on seven international locations and threatened to impose new levies on others.
The Dow Jones Industrial Common closed down 422 factors, or 0.9%, whereas the S&P 500 dropped 0.7%. The tech-heavy Nasdaq declined 0.9%.
Tesla, the electric-vehicle firm led by tech billionaire Elon Musk, fell 6% after the CEO reignited a feud with Trump by asserting plans to launch a political social gathering.
The selloff interrupted a weekslong market surge propelled partially by sturdy financial information and expectations of rate of interest cuts on the Federal Reserve.
On Monday morning, Trump unveiled 25% tariffs on South Korea and Japan that may take impact initially of August. Inside hours, Trump introduced contemporary tariffs on 5 further international locations, together with South Africa and Malaysia.
Trump plans to signal an government order on Monday setting Aug. 1 as the brand new begin date for so-called “reciprocal tariffs,” White Home Press Secretary Karoline Leavitt informed reporters. These levies had focused dozens of nations with a spread of tariffs as excessive as 50%.
White Home Press Secretary Karoline Leavitt holds a letter from President Donald Trump addressed to South Korean President Lee Jae Myung throughout a press briefing on the White Home in Washington July 7, 2025.
Andrew Caballero-Reynolds/AFP through Getty Photographs
Trump delayed the country-specific tariffs in April, vowing to strike roughly 90 commerce offers in 90 days. That pause had been set to run out on Wednesday.
Up to now, the White Home says it has reached commerce agreements with solely the UK and Vietnam, in addition to a preliminary accord with China.
On Monday, Trump additionally threatened to put an extra 10% tariff on international locations that align with BRICS nations, suggesting he had not backed off his dedication to make use of levies as a diplomatic coverage device.
BRICS nations, which lately voiced “severe issues” about unilateral tariffs, are made up of founding members Brazil, Russia, India and China, amongst just a few others.
Key measures of the economic system have confirmed resilient in current months, defying fears of resurgent inflation and a potential financial downturn. The inventory market has additionally surged, hitting contemporary file highs and eliciting cautious optimism from some Wall Avenue analysts.
