Stocks fall as Trump imposes 25% tariffs on Japan and South Korea, impacting U.S. automakers

Major stock indexes declined as President Trump announced 25% tariffs on goods from Japan and South Korea. U.S. Treasury yields rose, and U.S.-listed Japanese automakers’ shares fell. The U.S. will make more trade announcements in the next 48 hours. S&P 500 companies are set to report second-quarter results soon.

Trump imposed 25% tariffs on imports from Japan and South Korea, with further tariffs expected. The Dow Jones fell 1.15%, S&P 500 0.90%, and Nasdaq 0.97%. Tariffs are expected to raise prices and slow growth. Trump also threatened extra tariffs on countries aligning with BRICS.

Tesla shares dropped 7.4% after Elon Musk announced the formation of the “American Party.” MSCI’s global stock gauge fell 0.76%, while the yield on U.S. 10-year notes rose to 4.391%. The dollar index rose 0.58%, with the euro down and the dollar strengthening against the yen.

Investors await the Federal Reserve meeting minutes this week to gauge potential interest rate cuts. The Reserve Bank of Australia is expected to cut rates by a quarter point. U.S. crude rose to $67.47 a barrel, and Brent rose to $69.21 per barrel.

Read more at Yahoo Finance: Stocks fall, dollar up as Trump plans 25% tariffs on Japan, South Korea