Stocks slip further after new Trump tariff threats
President Trump threatened new 25% tariffs on Japan and South Korea early Monday afternoon, worsening what had been a run-of-the-mill market sell-off for the SPDR S&P 500 ETF.
The slump gathered pace after the president published correspondence with the respective nations about the tariffs shortly after 12:15 p.m. ET.
The new tariffs on goods from South Korea and Japan, America’s fifth- and sixth-largest goods trade partners, would take effect on August 1.
Despite predictions that the administration’s on-again, off-again tariff push would hammer the economy, the US job market has proved relatively resilient in recent months. But the market still seems slightly concerned, with small-cap indexes like the S&P SmallCap 600 — seen as especially closely attuned to the short-term outlook for the US domestic economy — is down more than 1.5% after the latest tariff headlines hit the tape.
CORRECTION (July 7, 2:50 p.m.): An earlier version of this had an incorrect trade ranking for Japan. It’s the US’s fifth-largest trade partner, not fourth. This has been updated.
The new tariffs on goods from South Korea and Japan, America’s fifth- and sixth-largest goods trade partners, would take effect on August 1.
Despite predictions that the administration’s on-again, off-again tariff push would hammer the economy, the US job market has proved relatively resilient in recent months. But the market still seems slightly concerned, with small-cap indexes like the S&P SmallCap 600 — seen as especially closely attuned to the short-term outlook for the US domestic economy — is down more than 1.5% after the latest tariff headlines hit the tape.
CORRECTION (July 7, 2:50 p.m.): An earlier version of this had an incorrect trade ranking for Japan. It’s the US’s fifth-largest trade partner, not fourth. This has been updated.
