The US stock markets are facing a decline on Monday. Dow Jones Industrial Average has fallen 525 points or 1.2 percent. S&P 500, 0.9 percent below. Nasdaq Composite seems to have a fall of 1 percent. The main reason for the decline in the US market is the announcement of American tariffs on Japan and South Korea. US President Donald Trump has said that he has sent letters to both countries to put 25 percent tariffs on the products coming to America in Japan and South Korea from August 1.
Trump also said in a post on Truth Social that if any of Japan or South Korea puts tariffs on American goods in response to this tariff, the rate of American tariff will be increased. After this announcement by Trump, Google’s parent company Alphabet Inc. and Apple shares lost 1 percent. AMD and NVIDIA shares are also declining. At the same time, the shares of Toyota Motor and Honda Motor came down by 4 percent.
Many business announcements are going to be held in 48 hours
On Monday, the US Treasury Secretary Scott Besant said on the “Squak Box” of CNBC that there would be several trade announcements in the next 48 hours. A few days are going to be busy. The mini trade deal between India and the United States has also been finalized and it may soon be an official announcement about it. Trump has also threatened to put an extra tariff of 10 percent on countries that support the BRICS group’s anti -America policies. Trump’s threat came when the BRICS Group condemned the tariff hike without naming Trump during a 2025 summit at Rio de Janeiro, Brazil.
The BRICS was founded by Brazil, Russia, India, China and South Africa. The group expanded last year and included Indonesia, Iran, Egypt, Ethiopia and the United Arab Emirates. Apart from new member countries, the group also includes 10 strategic partner countries. The category was built at the previous year’s summit, including countries such as Belarus, Cuba and Vietnam.
Japan, South Korea ETFS fell
Japan and South Korea’s Exchange Traded Fund, ie ETFS, declined after the announcement of 25 percent tariffs. Ishares MSCI Japan ETF fell 2 percent. Ishares MSCI South Korea ETF came down 3 percent.