US stocks tumbled Monday as a fresh round of trade tensions rattled investor sentiment. President Donald Trump posted a series of signed letters on social media announcing steep new tariffs on imports from at least seven countries, effective August 1. The Dow Jones Industrial Average fell 422 points, or 0.94%, closing at 44,406.36. The S&P 500 shed 0.79% to finish at 6,229.98, while the Nasdaq Composite dropped 0.92% to 20,412.52, the worst single-day performance for all three major indices since mid-June.
In a move that caught markets off guard, Trump’s letters outlined tariff hikes targeting imports from Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, and Myanmar. White House press secretary Karoline Leavitt confirmed that 14 letters would be dispatched Monday, with more to follow in the coming days. She also said Trump will delay the implementation of the tariffs, originally expected this week, to August 1 via executive order. Stocks most exposed to international trade bore the brunt of the selloff, with Toyota and Honda down 4% and 3.9% respectively. Apple and Alphabet both lost more than 1%, while AMD slipped over 2%. Nvidia also edged lower.
Adding to the geopolitical uncertainty, Trump floated the possibility of an additional 10% tariff on countries aligning with what he called the “Anti-American policies of BRICS,” a group of major emerging economies including Brazil, Russia, India, China, and South Africa. He did not specify which policies triggered the warning, but the timing coincided with a BRICS summit in Brazil focused on reducing reliance on the US dollar. Meanwhile, Treasury Secretary Scott Bessent told CNBC viewers to expect “several trade announcements” within the next 48 hours, suggesting that market turbulence may not be over.
Tesla shares slumped nearly 7% after CEO Elon Musk announced plans to form a new political party, the “America Party.” Investors appeared rattled by the billionaire’s deepening involvement in politics, with some analysts suggesting it could further damage Tesla’s brand and sales, which have already struggled in 2025.
Broader weakness was felt across sectors, with nine of the S&P 500’s 11 industry groups closing lower, led by consumer discretionary stocks. Twenty-five of the 30 Dow components declined on the day.
European markets firm but caution lingers
In Europe, stocks held firmer despite US tariff jitters, with the Stoxx 600 closing up 0.4%. France’s CAC 40 rose 0.4%, Germany’s DAX gained 1.1%, but London’s FTSE 100 fell 0.2%. Investors in the region are closely watching for upcoming US trade announcements, which could alter global supply chain flows and pressure export-heavy sectors.
Australian markets look set to follow Wall Street lower
The SPI futures point to a 47-point drop at the open, or 0.6%. The Australian dollar slipped 1% to US64.91¢. Commodity markets showed mixed moves, gold edged down slightly to US$3,336.50 an ounce, iron ore fell 0.6% to US$95.25 a tonne, while Brent crude rose 1.8% to US$69.56 a barrel. Bond yields held steady, with 10-year yields at 4.38% in the US and 4.18% in Australia.
Today’s agenda
Locally, attention turns to the Reserve Bank of Australia, which meets Tuesday and is widely expected to cut rates by 25 basis points. At 11:30am, NAB will release its June survey of business confidence and conditions, a key read on domestic sentiment heading into the second half of the year.
