Trump Launches Broad Tariff Blitz, Markets React to Heightened Trade Friction

President Trump has escalated his trade strategy by issuing formal letters to 14 countries—including major economies like Japan and South Korea—detailing new reciprocal tariffs ranging from 25% to 40%, all set to take effect on August 1. This wave follows his earlier warning to BRICS nations about an additional 10% levy, reinforcing a stance of uncompromising trade leverage. Trump emphasized that while some countries have secured exemptions, others will face repercussions unless bilateral relationships improve, indicating a deliberate pivot toward personalized trade diplomacy over multilateral compromise. At the same time, he extended the deadline for prior “Liberation Day” tariffs to August 1, underscoring a strategic recalibration of timelines to maintain room for negotiations.

American financial markets reacted sharply to these developments. U.S. stock futures dropped, and major indices—including the Dow, Nasdaq, and S&P 500—tumbled by more than one percent at one point during Monday’s session. Technology, automotive, and industrial stocks led the declines amid renewed risk-off sentiment. U.S. Treasury yields climbed as investors sought stability in fixed income, and the dollar strengthened as a safe haven. Remarkably, gold surged past $3,300 an ounce this year, reflecting investor anxiety over policy unpredictability. Despite market turbulence, institutional observers note that the administration’s signal of readiness to negotiate and the extension of tariff deadlines have somewhat softened concerns, keeping overall volatility contained.