BREAKING: Trump Announces New Tariff, Shoots Letter To South Korea & Japan; Dow Feels The Tremors

Trump Tariff: Stocks slumped on Monday, with the Dow Jones Industrial Average dropping 447 points, or 1%. The S&P 500 lost 0.8%, and the Nasdaq Composite fell 0.9%. The drop came after President Donald Trump announced a new 25% tariff on goods from Japan and South Korea, sending shockwaves through the market.

In a series of posts on Truth Social, Trump confirmed that he had sent official letters to both Japan and South Korea, notifying them of the new levies. 

The tariffs will go into effect on August 1 and will be added to any retaliatory tariffs that might be imposed by the two nations. 

Investors responded to the news by selling off shares of key tech companies, including AMD, Nvidia, Apple, and Alphabet. While AMD and Nvidia saw only slight losses, Apple and Alphabet dropped more than 1%.

Trump's Threat to BRICS Nations

Along with the tariffs on Japan and South Korea, President Trump threatened to impose an additional 10% tariff on countries that align with the “Anti-American policies of BRICS”, a group of emerging market countries including Brazil, Russia, India, and China. 

While Trump did not provide details on what specific policies were troubling, the announcement comes as the BRICS nations are in talks in Rio de Janeiro. The group has recently pushed to reduce its reliance on the U.S. dollar.

Tesla Shares Take a Hit

Adding to the market's worries, Tesla's stock fell by 7% after CEO Elon Musk revealed plans to form a new political party called the "America Party." Musk's move into politics this year has raised concerns among investors, with some suggesting that his political activities are harming Tesla's brand and affecting its sales.