- The US stock markets reacted negatively on Monday After President Trump announced on social media that he would one -sidedly impose Japan and South Korea on 25% trade tariffs. The tariffs aim on two of the closest allies and important suppliers of cars, electronics and steel.
President Donald Trump with the global markets on Monday The announcement that the USA Will be imposed From August 1, a tariff of 25% on all imports from Japan and South Korea. The move, which was delivered by letters to the leaders of both countries and published by the social of truth, marks a dramatic escalation in the administration’s campaign to force trading partners into what Trump calls “more fairer and fair trade”.
US shares reacted with a sharp withdrawal when the message broke. The Dow Jones Industrial Average fell up to 447 points (1%), the S&P 500 0.8%and technical driving Nasdaq Composite slipped by 0.9%for lunch. The S&P 500 and Nasdaq had recorded all -time highs last week, but the optimism evaporated when investors evaporated the prospect of retaliatory measures and disorders of the supply chain. So it was in the middle of the day trade:
- Dow Jones: -447 points (-1%)
- S&P 500: -0.8%
- Nasdaq: -0.9%
The abrupt change in politics brought new uncertainties into the markets. Tesla led the decliner and fell by almost 7%when investors reacted to the news that CEO Elon Musk concentrated on the building A new political party. The sale was broad, with multinational companies and manufacturers being particularly violent.
The tariffs aim on two of the closest allies and important suppliers of cars, electronics and steel. Companies with global supply chains – especially in technology, automotive and consumer goods – are likely to pursue the margin pressure and the increasing input costs. It is expected that both Japan and South Korea may be selected on US exports in sectors from agriculture to aerospace.
With Q2 Starting earnings time, analysts previously warned this tariff tariff cost inflation Could appear in profit warnings and revised guidelines, especially for S&P 500 companies with considerable Asia exposure.
Fortune generative AI used for this story to help with a first draft. An editor checked the accuracy of the information before publication.
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