Dow falls 500 points to session low after Trump announces 25% tariff on Japan, Korea goods: Live updates
Traders work on the floor of the New York Stock Exchange (NYSE) on July 07, 2025, in New York City.
Spencer Platt | Getty Images News | Getty Images
Stocks fell to their lows of the day Monday after President Donald Trump announced a 25% tariff on Japanese and Korean imports.
The Dow Jones Industrial Average tumbled 514 points, or 1.2%. The S&P 500 fell 0.9%, and the Nasdaq Composite lost 1%.
In a pair of Truth Social posts, Trump said he sent letters to Korea and Japan notifying the countries of the levies. These tariffs will start Aug. 1, and will be added to any retaliatory tariffs from either nation.
White House press secretary Karoline Leavitt added that 12 more letters will be sent on Monday, with more to be expected in the following days. She also said that Trump will sign an executive order to delay his tariff deadline, previously anticipated to be sometime this week, until Aug. 1.
Shares of Toyota Motor and Honda Motor fell 4% following Trump’s announcement. AMD and Nvidia were slightly lower, while Apple and Alphabet shed over 1%.
These mark the first of several trade announcements Trump was expected to make. Treasury Secretary Scott Bessent said Monday on CNBC’s “Squawk Box” that there would be several trade announcements over the next 48 hours, adding that he expects “it’s going to be a busy couple of days.”
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, Brazil. In recent years, the group has sought to move away from its dependence on the U.S. dollar.
“Given that we’ve got this optimistic view — the markets are at record highs — tariff talk is not going to be helpful,” Jed Ellerbroek, portfolio manager at Argent Capital Management, told CNBC in an interview. “The more we’re talking about tariffs, the less happy the market is.”
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.
— CNBC’s Erin Doherty contributed to this report.
