Markets Fall as Trump Hits Japan, S. Korea With Tariffs

It's expected to be a busy week on the tariffs front, and President Trump just announced his first two moves. Trump sent letters to South Korea and Japan informing them that the US would start collecting a 25% tariff on all goods they ship to the US, effective Aug. 1, reports CNBC. Trump posted the letters on Truth Social, and more are expected to follow: The president said over the weekend that he plans to send a dozen or so letters this week announcing new tariff rates, per the Wall Street Journal. The rates are expected to range from 10% to 70%.

The president also warned against retaliation. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge," he wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, per the AP. The White House has given nations until Wednesday to strike deals, though the administration also has signaled that a new deadline of Aug. 1 might be in the works, per the Journal.

• The Dow fell about 500 points, or more than 1%, on the news, and the benchmark S&P index was down a similar percentage, per MarketWatch.