The actions closed significantly on Monday after President Donald Trump announced pronounced tariffs on seven countries and threatened to impose new levies on others.
The industrial average Dow Jones closed 422 points, or 0.9%, while the S& P 500 fell 0.7%. The technological heavy nasdaq decreased 0.9%.
Tesla, the electric vehicle company led by the technological billionaire Elon Musk, fell 6% after the CEO revived a dispute with Trump by announcing plans to launch a political party.
The mass sale interrupted an increase in the one -week market promoted in part by strong economic data and expectations of interest rate cuts in the Federal Reserve.
On Monday morning, Trump announced 25% tariffs in South Korea and Japan that would go into force in early August. In a matter of hours, Trump announced new rates in five additional countries, including South Africa and Malaysia.
Trump plans to sign an executive order on Monday, August 1 as the new start date for the so -called “reciprocal tariffs,” the White House Secretary, Karoline Leavitt told reporters. These taxes had signed dozens of countries with a variety of rates of up to 50%.
The White House Secretary, Karoline Leavitt, receives a letter from President Donald Trump addressed to the South Korean president Lee Jae Myung during a press conference at the White House in Washington on July 7, 2025.
Andrew Caballero-Reynolds/AFP through Getty Images
Trump delayed the country’s specific tariffs in April, promising approximately 90 trade agreements in 90 days. That pause had been to expire on Wednesday.
Until now, the White House says it has reached trade agreements only with the United Kingdom and Vietnam, as well as a preliminary agreement with China.
On Monday, Trump also threatened to place an additional 10% rate on the countries that are aligned with BRICS nations, suggesting that he had not retreated his commitment to use taxes as a diplomatic policy tool.
BRICS’s nations, which recently expressed “serious concerns” about unilateral tariffs, are formed by founding members of Brazil, Russia, India and China, among some others.
The key measures of the economy have proven to be resistant in recent months, challenging the fears of resurgent inflation and a possible economic recession. The stock market has also increased, reaching new records and causing caution optimism of some Wall Street analysts.
