Monday Afternoon Coffee - Markets Update - 7 July 2025 - Markets Fall as Trump Targets Japan, South Korea with Tariffs; Dollar Climbs

The Trade Academy Team
Jul 7
2 min read

Markets Update: U.S. stocks slid Monday while the dollar surged after President Donald Trump announced new 25% tariffs on goods from Japan and South Korea, stoking fears of a wider trade conflict and raising investor caution.

Global Markets Roundup: 7 July 2025

Major indexes closed lower, with automakers and tech stocks under pressure and Tesla tumbling after CEO Elon Musk revealed plans to launch a political party. Treasury yields edged higher as traders absorbed the latest trade salvos and braced for key economic signals later in the week.

Stocks Drop on Fresh Tariff Uncertainty

Equity markets weakened as Trump confirmed a 25% tariff on imports from Japan and South Korea starting August 1, part of a broader strategy of “reciprocal” tariffs on U.S. trading partners. The move dragged down shares of Japanese automakers listed in the U.S., with Toyota falling 4.1% and Honda losing 3.8%.

Investors remained wary ahead of a self-imposed Wednesday deadline for trade negotiations, with Treasury Secretary Scott Bessent promising multiple announcements in the next 48 hours.

Dow Jones Industrial Average: -515.77 points (-1.15%) to 44,314.92
S&P 500: -56.23 points (-0.90%) to 6,222.20
Nasdaq Composite: -195.58 points (-0.97%) to 20,404.31

Tesla Sinks, Global Stocks Mixed

Tesla shares plunged 7.4% after Musk introduced a new political venture, the “American Party,” raising concerns about executive distraction and political risk. Global equities mirrored U.S. jitters. The MSCI All Country World Index dropped 0.76% to 918.65, while Europe’s STOXX 600 rose 0.44%.

Dollar Jumps, Treasuries Mixed

The dollar gained sharply as trade fears and a robust U.S. labor market supported the greenback. The DXY index rose 0.58% to 97.53.

Euro EURUSD: -0.59% to $1.1709
Yen USDJPY: +1.04% to 146.02

The 10-year Treasury yield climbed to 4.391%, up 5.1 basis points from Thursday’s close, as investors weighed upcoming Fed meeting minutes and debated future rate cuts.

Gold Flat, Oil Rises

Gold ended little changed despite tariff-driven uncertainty. The front-month contract settled at $3,332.20 per troy ounce, as gains were offset by dollar strength.

Crude prices edged higher:

WTI Crude (CL1!): +0.7% to $67.47/barrel
Brent Crude (BRN1!): +1.33% to $69.21/barrel

Outlook

Markets face a pivotal week as the White House barrels ahead with new trade measures and the Fed minutes offer clues on policy. With Trump hinting at tariffs as high as 70% and threats of added penalties for BRICS-aligned nations, investor nerves are likely to stay frayed.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team