FX.co ★ US Stocks Extend Losses After Tariff Shock

U.S. stocks continued to decline as the S&P 500 and Nasdaq both fell approximately 0.8%, while the Dow dropped over 450 points. This downturn comes as investors reacted to President Trump's intensification of his tariff strategy. On Truth Social, Trump announced that a sweeping 25% tariff on all imports from Japan and South Korea will be implemented starting August 1st. This is in addition to existing industry-specific tariffs. Trump also cautioned that any country "in alignment with the anti-American policies" of the BRICS group will face an additional 10% tariff. Treasury Secretary Scott Bessent noted that further similar announcements will be issued in the next 48 hours. Following Trump's statements, shares of Toyota and Honda fell by over 4%, while semiconductor companies AMD and Nvidia experienced slight declines. Meanwhile, Tesla's stock plummeted more than 7% after CEO Elon Musk declared over the weekend his intention to establish a new political party, raising concerns that his political involvement might weaken the company's brand and negatively impact electric vehicle sales.