United States stock markets tumbled on Monday after President Donald Trump announced new tariffs targeting countries associated with BRICS and formalized a 25% levy on imports from Japan and South Korea.

The announcement fueled investor concerns about escalating trade tensions and their potential impact on the global economy.

At around 12:21 PMthe Dow Jones Industrial Average fell by 525 pointsor 1.17%reflecting broad-based losses across major sectors. The Nasdaq 100 also declined by 0.91%shedding about 207 pointswhile the S&P 500 lost 0.96% at the same time.

In currency markets, the euro weakened against the dollar amid the market jitters, slipping 0.42% to trade at $1.17248 as of 12:28 PM and.

The sell-off comes after Trump outlined additional tariffs on BRICS-affiliated nations and formally imposed a blanket 25% tariff on all imports from Japan and South Korea, effective August 1, 2025. The administration framed the move as necessary to address long-standing trade deficits and protect U.S. economic and national security interests.

Investors remain cautious as the tariffs could lead to retaliatory measures and disrupt global supply chains, putting further pressure on equities and currency markets.