Shares dipped Monday after President Trump announced a fresh salvo of tariffs on greater than a dozen international locations as he works to rectify what he views as persistent commerce imbalances.
The S&P 500 as fell 49 factors, or 0.8%, to shut at 6,230, whereas the Dow Jones Industrial Common fell 422 factors, or 0.9%, to shut at 44,406. The tech-heavy Nasdaq Composite slid 0.9%.
Markets are as soon as once more feeling the warmth after the president mentioned Monday that he would impose tariffs on 14 international locations beginning August 1. The international locations embody Japan, Kazakhstan, Malaysia South Korea and Tunisia (which all face potential levies of 25%); Bosnia and Herzegovina and South Africa (which might be topic to 30% duties); Indonesia (32%); Bangladesh, Serbia (35%); Cambodia, Thailand (36%) and Myanmar and Laos (which face a 40% tariff charge). Mr. Trump posted tariff letters to every of the international locations on Fact Social detailing the brand new levies.
The letters come simply days forward of Wednesday, July 9, when the pause on U.S. reciprocal tariffs had originally been set to run out. The president and his workforce have been working to strike offers with buying and selling companions during the last 90 days earlier than the deadline. Mr. Trump is now anticipated to signal an government order extending the tariff freeze to August 1.
The president additionally mentioned Sunday that he would impose a further 10% tariffs in opposition to the BRICS bloc of creating nations, which held a summit in Brazil over the weekend.
Inventory indexes in Europe ended largely larger on Monday, whereas Asian markets closed largely decrease.
The brand new flurry of commerce exercise might pose a threat to markets, which have been climbing since April 2, when Mr. Trump introduced his “Liberation Day” tariffs. The S&P 500 had gone up more than 20% in late June, hitting a record high, with specialists on the time citing favorable commerce headlines as one of many primary causes for the turnaround. Shares additionally jumped final week after a better-than-expected jobs report. Nonetheless, analysts proceed to warning {that a} potential affect from tariffs continues to be but to be seen.
“We predict traders proceed to underestimate the affect of tariffs — simply because import taxes will not be as unhealthy as they appeared on Apr 2, the tariff burden will nonetheless be considerably bigger going ahead than it was in January because the [government] turns into more and more reliant on this income given excessive fiscal imbalances,” mentioned Adam Crisafulli, head of Very important Data, in a analysis notice.
contributed to this report.
