Shares closed down considerably on Monday after President Donald Trump introduced 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 saying plans to launch a political social gathering.
The selloff interrupted a weekslong market surge propelled partly by robust financial knowledge and expectations of rate of interest cuts on the Federal Reserve.
On Monday morning, Trump unveiled 25% tariffs on South Korea and Japan that might take impact at first of August. Inside hours, Trump introduced recent 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 advised 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 software.
BRICS nations, which just lately voiced “critical issues” about unilateral tariffs, are made up of founding members Brazil, Russia, India and China, amongst a couple of others.
Key measures of the financial system have confirmed resilient in current months, defying fears of resurgent inflation and a attainable financial downturn. The inventory market has additionally surged, hitting recent file highs and eliciting cautious optimism from some Wall Road analysts.
