Wall Street indexes dropped following Trump’s new tariffs on trading partners

Wall Street's major indexes plunged on Monday after US President Donald Trump announced sweeping tariffs on several trading partners, set to take effect August 1, Reuters reports.

Initially, Trump revealed duties targeting only Japan and South Korea, but the list later expanded to include Malaysia, Kazakhstan, South Africa, Laos, and Myanmar. As noted by Emily Roland of Manulife John Hancock Investments, markets had anticipated a reduction in tariff pressure. Instead, the new measures sparked concern. She suggested this could be a negotiating tactic, with investors remaining hopeful that the restrictions will be scaled back.

The S&P 500 opened the week with broad declines, as 9 of its 11 sectors lost ground. The hardest-hit segments were consumer discretionary and energy, while utilities and consumer staples were the only ones to post gains, Reuters says.

The news agency notes that the S&P 500’s sharp drop was driven largely by Tesla shares, which plunged 6.8% after CEO Elon Musk announced plans to form a new US political party.