By US stocks edged lower on Monday as investors assessed the latest developments on the global trade front.
The Dow Jones Industrial Average slipped 76 points, or 0.2%. The S&P 500 declined 0.3%, while the Nasdaq Composite fell 0.5%.
One of the biggest losers on Monday was Tesla.
The TSLA stock dropped sharply in early trading on Monday following CEO Elon Musk’s announcement over the weekend that he plans to form a new political party.
Treasury Secretary Scott Bessent said on CNBC’s Squawk Box that several trade announcements would be made over the next 48 hours, calling it “a busy couple of days,” but did not provide details on which countries might be involved.
Markets had been bracing for the expiration of the Trump administration’s 90-day tariff reprieve on most US trading partners, which was introduced in April.
Adding to investor caution, President Donald Trump threatened an additional 10% tariff on countries “aligned with the anti-American policies of BRICS,” referring to Brazil, Russia, India, China, and South Africa.
He did not specify which policies he was referencing.
The warning came as BRICS representatives met in Rio de Janeiro, with the bloc continuing efforts to reduce reliance on the US dollar.
Despite Monday’s pullback, equities remain near record levels.
The S&P 500 and Nasdaq closed at all-time highs Friday, buoyed by optimism that the administration would avoid implementing its harshest proposed tariffs.
“Trade negotiations typically take years,” Rajeev Sibal, senior global economist at Morgan Stanley, wrote last week.
“Even though the current discussions are narrower than comprehensive free trade agreements, historical precedent suggests investors should expect a prolonged process.”
Trump tariffs delayed?
Commerce Secretary Howard Lutnick said Sunday that President Donald Trump’s tariffs will take effect on August 1, later than the July 9 date many investors had anticipated.
The announcement follows Trump’s earlier declaration in April of a 90-day pause on the so-called reciprocal tariffs, a pause set to expire this week.
Speaking alongside Trump, Lutnick told reporters, “Tariffs go into effect Aug 1,” adding that “the president is setting the rates, and the deals, right now.”
Earlier on Sunday, Treasury Secretary Scott Bessent warned that countries lacking trade agreements with the US could see their tariff rates revert to the steep levels first unveiled on April 2.
In a post on Truth Social later that evening, Trump also threatened an additional 10% tariff on any country “aligning themselves with the Anti-American policies of BRICS.”
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