US Stock Markets Slide After Trump Imposes New Tariffs on Trading Partners

The United States stock markets closed in the red on Monday (7 July, local time) following the announcement of sweeping new tariffs by former President Donald Trump, targeting several major trading partners. According to Bloomberg, the downturn was broad, with key indices posting noticeable losses across the board.

The S&P 500 dipped 0.79%, while the S&P 600 Smallcap plummeted by 1.78%. The Russell 1000 fell 0.78%, the Nasdaq Biotech slid 1.48%, and the Dow Jones Industrial Average dropped 0.94%. The NYSE Composite shed 0.87%, and the Nasdaq Composite closed down by 0.92%.

Trump’s announcement came as a surprise to global markets, as he confirmed the reintroduction of trade tariffs affecting imports from Japan, South Korea, Indonesia, Malaysia, Kazakhstan, Cambodia, and several other developing economies. The former US President justified the move as a “corrective trade action” aimed at protecting American jobs and manufacturing.

Tech giants also took a hit, with Apple (AAPL) dropping 1.69%, Alibaba losing 2.24%, Alphabet (Google’s parent company) down 1.53%, and Microsoft slipping 0.22%. Market analysts cited fears of a renewed trade war and global supply chain disruptions as key drivers behind the slump.

In Asia-Pacific markets, the fallout was also evident. The Indonesian Rupiah weakened against the US Dollar in early trading on Tuesday (8 July), while the Jakarta Composite Index (IHSG) also opened lower. Meanwhile, investors appeared to seek safety in precious metals, as Antam gold prices surged on the back of risk-off sentiment.

Experts warn that the reimposition of tariffs—particularly in a fragile post-pandemic economic environment—could trigger broader uncertainty, not only for the US economy but also for emerging markets and commodity exporters like Australia. "This move could weigh heavily on Asia-Pacific exporters, with ripple effects for Australian mining and resource companies," said a senior economist at ANZ.

While it’s unclear whether the tariffs will hold long-term or be challenged in US courts, the announcement highlights how trade policy continues to play a major role in shaping global investor confidence.

Investors are advised to monitor ongoing geopolitical developments closely, especially in the lead-up to the 2024 US election. As the markets digest this latest move, volatility is expected to persist throughout the week.

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