Stocks slump Monday after Trump threatens new tariffs on certain countries

White House pushing backmost tariff deadline

White House pushing backmost tariff deadline to August 1 02:53

Stocks dipped Monday aft President Trump announced a caller salvo of tariffs on much than a twelve countries arsenic helium works to rectify what helium views arsenic persistent commercialized imbalances.

The S&P 500 arsenic fell 49 points, oregon 0.8%, to adjacent astatine 6,230, portion the Dow Jones Industrial Average fell 422 points, oregon 0.9%, to adjacent astatine 44,406. The tech-heavy Nasdaq Composite slid 0.9%.

Markets are erstwhile again feeling the vigor aft the president said Monday that helium would enforce tariffs connected 14 countries starting August 1. The countries see Japan, Kazakhstan, Malaysia South Korea and Tunisia (which each look imaginable levies of 25%); Bosnia and Herzegovina and South Africa (which would beryllium taxable to 30% duties); Indonesia (32%); Bangladesh, Serbia (35%); Cambodia, Thailand (36%) and Myanmar and Laos (which look a 40% tariff rate). Mr. Trump posted tariff letters to each of the countries connected Truth Social detailing the caller levies.  

The letters travel conscionable days up of Wednesday, July 9, erstwhile the intermission connected U.S. reciprocal tariffs had primitively been set to expire. The president and his squad person been moving to onslaught deals with trading partners implicit the past 90 days earlier the deadline. Mr. Trump is present expected to motion an enforcement bid extending the tariff frost to August 1. 

The president besides said Sunday that helium would enforce an further 10% tariffs against the BRICS bloc of processing nations, which held a acme successful Brazil implicit the weekend.

Stock indexes successful Europe ended mostly higher connected Monday, portion Asian markets closed mostly lower.

The caller flurry of commercialized enactment could airs a hazard to markets, which person been climbing since April 2, erstwhile Mr. Trump announced his "Liberation Day" tariffs. The S&P 500 had gone up much than 20% successful precocious June, hitting a grounds high, with experts astatine the clip citing favorable commercialized headlines arsenic 1 of the main reasons for the turnaround. Stocks besides jumped past week aft a better-than-expected jobs report. However, analysts proceed to caution that a imaginable interaction from tariffs is inactive yet to beryllium seen.

"We deliberation investors proceed to underestimate the interaction of tariffs — conscionable due to the fact that import taxes won't beryllium arsenic atrocious arsenic they appeared connected Apr 2, the tariff load volition inactive beryllium importantly larger going guardant than it was successful January arsenic the [government] becomes progressively reliant connected this gross fixed utmost fiscal imbalances," said Adam Crisafulli, caput of Vital Knowledge, successful a probe note.

The Associated Press contributed to this report.

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