With strong losses starts the week for the Wall Streetas Donald Trump made the official announcement dictatorial In seven countries, causing stock sales and investors nervousness.
The decision on additional duties, accompanied by threats to escalation and to the BRICS countries, brings new shadow over Wall Street and international financial markets, in view of a full -fledged summer and economic summer.
The main indicators of Wall Street recede significantly, following a downward course throughout the meeting. Dow Jones records 533 points or -1.2%, the S&P 500 is 1%loss, while the NASDAQ technological index slides by 1.1%.
Losses report shares of top industrial and technological giants: Toyota and Honda are 4%, while Apple, Alphabet and AMD drop over 2%. Tesla’s share was at -7%, overwhelmed by the political ambitions of Elon Musk, who announced the creation of a new party on the weekend, named America Party.
Through Truth Social, Trump posted photos of the letters he sent to the leaders of N. Korea, Japan, Malaysia, Kazakhstan, South Africa, Laos and Myanmar, informing them of the imposition of duties from 25% to 40% on imported goods from August 1. According to the White House spokesman Carolin Levitt, 14 letters have already been sent, with new ones following in the coming days.
At the same time, Trump left open the possibility of an additional 10% duties in countries that are “aligned with BRICS ‘anti-American policies”, without specifying what is specifically mentioned. The threats came as the BRICS countries (Brazil, Russia, India, China, South Africa) meet in Rio de Janeiro, at a meeting where transactions are being discussed.
As CNBC commented on Argent Capital Management’s Jed EllerBroek portfolio, “markets were at historically high, but the reset of duty rhetoric only does evil. The more we talk about duties, the more the investment climate recedes. “
Analysts estimate that these moves may also be election, with the aim of gathering voters and strengthening Trump’s image as a “negotiator”. However, the short -term consequences for trade and markets are already visible, with several investors awaiting new measures from central banks if the trend is escalating.