U.S. Stocks Tumble After Trump’s Tariff Announcement
(MENAFN) The New York Stock Exchange tumbled Monday following President Donald Trump's release of multiple tariff notifications targeting specific nations with sweeping levy rates.
The Dow Jones Industrial Average plummeted 0.94%, shedding 422.17 points to settle at 44,406.36.
The Nasdaq composite declined 0.92%, dropping 188.59 points to finish at 20,412.52, while the S&P 500 fell 0.79%, losing 49.37 points to close at 6,229.98.
Markets reacted to Trump's Monday declaration that Washington would implement comprehensive tariffs spanning 25% to 40% across Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand.
Trump distributed correspondence to these nations' leadership, stating, "Our relationship has been, unfortunately, far from Reciprocal."
Encouraging nations to manufacture products domestically within American borders to circumvent levies, Trump indicated the nation-specific tariff percentages represented "far less than" the threshold required to completely resolve their trade disparities with America.
Trump additionally cautioned that levies might escalate beyond designated percentages should these countries retaliate with counter-tariffs against the US.
Tariffs to take effect Aug. 1
The White House subsequently revealed Trump would execute an executive directive Monday postponing his July 9 tariff implementation to Aug. 1.
Press Secretary Karoline Leavitt additionally confirmed 14 correspondence pieces would be dispatched Monday, with additional communications anticipated in subsequent days.
Meanwhile, Treasury Secretary Scott Bessent informed a financial media platform Monday that America would deliver "several" trade declarations within the coming 48 hours.
Before substantial duties on merchandise from numerous countries are anticipated to resume, Bessent noted, nations were rushing to establish negotiations with America.
"We've had a lot of people change their tune in terms of negotiations," he said. "It's going to be a busy couple of days."
Japanese automotive manufacturers Toyota and Honda witnessed stock values decline approximately 4%, while South Korean telecommunications corporation SK experienced share drops approaching 8% and LG Display suffered losses exceeding 8%.
Tesla's stock value crashed roughly 6.8% Monday as CEO Elon Musk revealed intentions to establish a new political organization.
Following Trump's landmark spending and tax-reduction legislation, his described "Big, beautiful bill," receiving Congressional approval last week, Musk announced Saturday his intention to establish the "America Party," potentially concentrating on "just 2 or 3 Senate seats and 8 to 10 House districts."
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