US Stocks Plummet as Trump Announces Tariffs on Japan, South Korea, and More
US President Donald Trump announced a flurry of tariffs on countries including Japan, South Korea, and South Africa, sending the Dow Jones Industrial Average down 422 points or 0.94% in its worst day in about three weeks. The S&P 500 fell 0.79%, while the Nasdaq Composite slid 0.92%.
The new tariffs, set to take effect on August 1, include 25% rates on Japan and South Korea, with varying rates ranging from 25% to 40% on countries such as Myanmar, Malaysia, Kazakhstan, Laos, and South Africa. The White House Press Secretary stated that the president would sign an executive order to move the July 9 tariff deadline to August 1, creating a timeline for negotiations.
Major Japanese automakers like Toyota, Nissan, and Honda saw their US-listed shares drop by 4%, 7.16%, and 3.86%, respectively. South Korean technology companies LG Display and SK Telecom also experienced significant declines in share value. Exchange-traded funds tracking these markets plummeted, with the Japan-focused ETF posting its worst day since early April.
Investors digested the tariff developments, causing US government bonds to slide, while the 10-year Treasury yield rose to 4.39% and the 30-year yield increased to 4.92%. The US dollar index gained 0.3%, but other currencies weakened against it. Wall Street’s fear gauge jumped 8.4%.
Despite recent optimism about the tariff situation, some analysts warned of potential risks on the downside. Scott Wren, global market strategist at Wells Fargo Investment Institute, noted that stocks may be ahead of themselves and could pull back as consumer spending slows. The Dow remains about 608 points away from its all-time high.
The upcoming week will focus on signs of new proposed tariff rates, with some analysts predicting a potential slump in stocks if tariff rates increase unexpectedly.
Source: https://edition.cnn.com/2025/07/07/investing/us-stock-market