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Stocks sold off to start the week Monday after President Donald Trump posted letters to countries indicating new tariffs on imported goods.
The Dow Jones Industrials slumbered 422.17 points to 44,406.36.
The S&P 500 index removed 49.37 points to 6,229.98
The NASDAQ Composite stumbled 188.59 points to 20,454.76.
U.S. were closed the latter part of Thursday and all of Friday for the 4th of July long weekend.
Imports from at least seven countries will face steep tariffs beginning Aug. 1, Trump revealed in a series of Truth Social posts on Monday. Trump shared screenshots of signed form letters to the leaders of South Korea, Japan, Malaysia, Kazakhstan, South Africa, Laos and Myanmar, that dictated new tariff rates for each nation.
Shares of Toyota Motor and Honda Motor fell 4% following Trump’s posts. Nvidia was slightly lower, while Apple, Alphabet and AMD shed over 2%.
Tesla shares also put pressure on the broader market. The EV maker shed 7% after CEO Elon Musk announced his intention over the weekend to form a new political party called the “America Party.” Investors have been less than pleased with the billionaire’s foray into politics this year, which some say have damaged Tesla’s brands and sales.
President Donald Trump and Commerce Secretary Howard Lutnick were also asked on Sunday to clarify when tariffs are set to go into effect. In response, Lutnick said, “Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now.” Trump nodded in approval.
Investors had been expecting tariff rates to go into effect this week. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most U.S. trading partners was set to end this week.
Adding to trade worries, Trump also threatened an additional 10% tariff on countries that align with the “Anti-American policies of BRICS,” which refers to emerging market countries including Brazil, Russia, India and China. Trump did not elaborate on any specific policy of BRICS.
The announcement came as the group met in Rio de Janeiro. In recent years, the group has sought to move away from its dependence on the U.S. dollar.
Prices for the 10-year treasury were lower, raising yields to 4.39% from Wednesday’s 4.34%. Treasury prices and yields move in opposite directions.
Oil prices recovered 98 cents to $67.98 U.S. a barrel.
Gold prices recovered $4.30 to $3,347.20 U.S. an ounce.
