Reported by Tahir Ishaq Shehu
US stocks fell sharply on Monday after President Donald Trump announced sweeping new tariffs on major trading partners including Japan and South Korea. The Dow dropped 422 points while the S&P 500 and Nasdaq also posted their worst day in nearly three weeks.
Trump revealed a 25 percent tariff on Japanese and South Korean goods with more tariffs up to 40 percent on imports from Malaysia South Africa and others. The tariffs announced via Truth Social will take effect on August 1 extending the negotiation deadline from July 9.
Markets reacted strongly as Japanese and South Korean stocks plunged ETFs tracking the affected countries dropped and US Treasury yields rose. Despite US losses Asian markets showed resilience on Tuesday.
Analysts say the steep tariff rates surprised investors though some believe the moves are meant to accelerate trade talks rather than cause immediate shocks. Treasury Secretary Scott Bessent hinted more announcements are coming within 48 hours.
While some experts see buying opportunities others warn the tariffs could slow the economy especially if BRICS-aligned nations retaliate. Investors are closely watching for further developments this week.
