Stocks Fall as Trump Announces Tariffs on Japan, South Korea, and Others

US stocks fell Monday as President Donald Trump announced tariffs on countries including Japan, South Korea, and South Africa. The Dow closed lower by 422 points, or 0.94%. The S&P 500 fell 0.79% and the Nasdaq Composite fell 0.92%. Stocks dropped midday after Trump announced 25% tariffs on Japan and South Korea, set to go into effect August 1. The three major indexes posted their worst day in about three weeks. Trump also announced tariffs on countries like Myanmar, Malaysia, and South Africa. US-listed shares in major Japanese automakers and South Korean technology companies dropped significantly. Exchange-traded funds managed by BlackRock tracking Japanese, South Korean, South African, and Malaysian stocks were down. US government bonds and the US dollar were also impacted by the tariff news. Asian stocks responded relatively mutedly, with investors focusing on the new August 1 deadline as a sign of progress.

US stocks had rallied in recent weeks as investors bet on a resolution to tariff confusion. Wall Street was cautiously optimistic as Trump's trade deal deadline approached. Chief strategist Mohit Kumar believes the impact on markets will be short-term and sees more trade deals being signed. The S&P 500 hit record highs recently, driven by positive economic data. Treasury Secretary Scott Bessent expects several announcements in the next 48 hours. However, some warn of complacency in markets and potential downside risks due to tariff rates settling and economic slowdown.

Trump also announced an additional 10% tariff on countries aligning with BRICS. While the S&P 500 and Nasdaq hit record highs, the Dow is still below its all-time high. Wall Street is closely watching for any signs of proposed tariff rates this week, with concerns that higher rates could impact stocks negatively.

According to the source: CNN.