Stocks Slip and Dollar Climbs as Trump Unveils Sweeping Tariff Plan – US Market Wrap

Stocks fell from all-time highs and the dollar rose after Trump began revealing his tariff plans, with the US imposing levies on countries such as Japan, South Korea, and South Africa beginning in August, causing a selloff in their currencies.

The S&P 500 fell about 1%, with megacaps leading the way, while Tesla fell nearly 7% after Musk announced the formation of a political party, raising concerns about the company’s future. Treasuries fell, with longer-dated bonds underperforming. Emerging markets were hit as Trump threatened to impose additional tariffs on countries aligned with “the anti-American policies of the BRICS.”

Trump unveiled the first of a series of promised letters threatening to impose higher tariffs on key trading partners, including 25% levies on goods from Japan and South Korea. He also announced 25% tariffs on Malaysia and Kazakhstan, 30% on South Africa, and 40% on Laos and Myanmar.

According to White House Press Secretary Leavitt, approximately a dozen countries will receive direct notifications from the president on Monday regarding tariffs. Additional letters will be sent in the coming days, she said.

The European Union does not expect to receive a letter setting tariff rates today, according to a person familiar with the discussions who spoke on the condition of anonymity. The EU hopes to reach a preliminary trade agreement with the US this week, allowing it to lock in a 10% tariff rate beyond the August 1 deadline while they negotiate a permanent agreement.
Meanwhile, Treasury Secretary Scott Bessent told CNBC he planned to meet with his Chinese counterpart in the coming weeks.