Tariff decision on two major exporters spooks investors, Canada held to a different timeline
The Dow Jones Industrial Average dropped 1.2 per cent, the S&P 500 fell 0.9 per cent, and the Nasdaq Composite fell one per cent after President Donald Trump announced 25 per cent tariffs on Japanese and Korean imports on Monday.
The tariffs, set to take effect on August 1st, will be added to retaliatory tariffs imposed on both countries. The policy change was announced via posts on Trump's Truth Social app.
According to CNBC, shares of Toyota and Honda had both fallen over four per cent following the announcement. AMD and Nvidia both traded lower while Apple and Alphabet have lost over one per cent.
US Treasury Secretary Scott Bessent told CNBC that the President was going to be making several trade announcements over the next two days.
Wednesday has been set as the tariff deadline for many countries impacted by the tariffs imposed on "Liberation Day" in April. Letters from the White House will be sent to many of those countries to seek trade deals. Canada, however, is not set to be impacted by that deadline. Canada was not included in the tariffs announced on "Liberation Day" and has committed to reaching a bilateral accord with the United States by July 21st.
Negotiations between Canada and the US were almost derailed in late June over Canada's digital services tax (DST). Ottawa's rapid repeal of that policy allowed negotations to resume.
