New york: The New York Stock Exchange ended Monday on a downward trend as US President Donald Trump unveiled several tariff letters imposing country-specific blanket tariff rates.
According to Anadolu Agency, the Dow Jones Industrial Average fell by 0.94%, or 422.17 points, closing at 44,406.36. The Nasdaq composite declined by 0.92%, or 188.59 points, ending at 20,412.52, while the S and P 500 dropped by 0.79%, or 49.37 points, to settle at 6,229.98.
The stock market's decline came in the wake of Trump's announcement on Monday that the US would impose tariffs ranging from 25% to 40% on countries including Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand. Trump addressed the leaders of these nations in letters, stating, "Our relationship has been, unfortunately, far from Reciprocal."
Trump urged these countries to consider producing goods in the US to avoid the tariffs and indicated that the tariff rates were "far less than" what is needed to address trade imbalances with the US fully. He also cautioned that tariffs could be increased if these countries retaliate with their own tariffs against the US.
The White House announced that Trump would sign an executive order on Monday delaying the initial July 9 tariff deadline to August 1. Press Secretary Karoline Leavitt stated that 14 letters were sent on Monday, with more expected in the coming days.
Treasury Secretary Scott Bessent told CNBC that the US would make "several" trade announcements in the next 48 hours. Bessent highlighted that countries were eager to negotiate with the US before high levies on goods from numerous nations are reinstated. "We've had a lot of people change their tune in terms of negotiations," he remarked. "It's going to be a busy couple of days."
Shares of Japanese car manufacturers Toyota and Honda fell around 4%, while South Korean telecommunications company SK's shares dropped nearly 8%, and LG Display's shares fell more than 8%. Tesla's shares also saw a decline of approximately 6.8% after CEO Elon Musk announced plans to launch a new political party. Musk's announcement followed the recent approval of Trump's spending and tax-cut legislation, dubbed the "Big, beautiful bill," by Congress. Musk revealed his intention to establish the 'America Party,' potentially targeting 'just 2 or 3 Senate seats and 8 to 10 House districts.'