Wall Street slides after Trump announces 25% tariffs on Japan, Korea; Tesla and tech stocks weigh

US markets came under pressure on Monday after former President Donald Trump announced a 25 percent tariff on imports from Japan and South Korea, reigniting fears of a renewed global trade war. The tariffs, effective from August 1, will apply to a broad set of goods, and any retaliatory duties from the two countries may invite further escalation.

The Dow Jones Industrial Average dropped over 440 points, or about 1 percent, marking its session low. The S&P 500 fell 0.8 percent, while the tech-heavy Nasdaq Composite slipped 0.9 percent, dragged down by losses in key technology stocks.

Apple and Alphabet each declined more than 1 percent, while semiconductor names AMD and Nvidia also ended lower. Tesla shares tumbled 7 percent after CEO Elon Musk revealed plans to launch a political outfit called the “America Party,” a move seen by investors as a potential distraction from the EV maker’s core business.

Markets were also rattled by Trump’s suggestion of a potential 10 percent tariff on nations seen as supporting “anti-American” policies, loosely referring to BRICS member countries. The timing coincided with the BRICS summit in Rio de Janeiro, where the group has been discussing efforts to reduce dependence on the US dollar in global trade.

Despite the broader weakness, cybersecurity stocks bucked the trend. The Amplify Cybersecurity ETF (HACK) hit a new all-time intraday high, lifted by gains in Tenable, CyberArk, Fortinet, Rubrik, and Cloudflare, all of which rose more than 1 percent.

Uber shares surged nearly 4 percent to a record high. Meanwhile, Netflix lost ground after Seaport Research downgraded the stock to ‘neutral’ citing stretched valuations and the need for execution ahead of its July 17 earnings report.

European stocks close higher on trade deal hopes

European equities ended the session in positive territory as investors braced for a series of trade-related developments out of Washington. The Stoxx Europe 600 rose 0.4 percent, while France’s CAC 40 and Germany’s DAX gained 0.4 percent and 1.1 percent, respectively. The UK’s FTSE 100 was the only major index to slip, closing 0.2 percent lower.

Investor attention across the continent remained focused on upcoming US policy moves, with signals from the US Treasury suggesting multiple trade announcements over the next two days.

In deal news, shares of WNS Global Services jumped nearly 16 percent in US pre-market trade after France’s Capgemini announced a $3.3 billion cash acquisition of the India-origin business outsourcing and analytics firm.