Dow plummets over 500 points after Trump announces 25% tariffs on Japan and Korea

The Dow Jones Industrial Average tumbled more than 500 points on Monday after former President Donald Trump announced a sweeping 25% tariff on imports from Japan and South Korea. The move reignited fears of a renewed trade war, shaking investor confidence and sending global markets lower.

🔹 Key Points:

• Tariff Details: Trump declared that starting August 1, the U.S. will impose a 25% tariff on all Japanese and South Korean imports unless both nations reduce trade barriers and offer more access to U.S. companies.
• Retaliation Threat: He warned that any retaliation would be met with additional tariffs.
• Market Reaction:
  • Dow Jones fell over 500 points (-1.1%)
  • S&P 500 and Nasdaq dropped roughly 1%
  • Export-sensitive sectors like autos, semiconductors, and industrials were hit hardest.

🔹 Investor Sentiment:

This latest tariff threat echoes protectionist actions seen earlier in 2025, raising fresh concerns about inflation, supply chain disruptions, and central bank policy adjustments. Traders moved into defensive positions, fearing rising costs for imported goods and potential retaliation from key U.S. allies.

🧭 Outlook:
Markets may remain volatile as investors await responses from Japan and South Korea. With the Federal Reserve already navigating a delicate economic environment, this added geopolitical tension adds uncertainty to the policy outlook.