By Angus Berwick and Matt Wirz

Stocks fell Monday after President Trump renewed trade tensions with a range of countries while extending a deadline on so-called reciprocal tariffs to Aug 1.

Major indexes opened lower, with declines accelerating after the U.S. announced 25% tariffs on goods from Japan and South Korea. Several more nations received similar notifications, which were posted on Trump's Truth Social platform Monday afternoon.

Trade levies were scheduled to be reimposed Wednesday for dozens of countries, before the deadline extension to Aug. 1. Trump wrote that if Japan and South Korea made adjustments to their trade practices with the U.S., then the tariff rate could come down or go up depending on the results.

Earlier, Trump also threatened an additional levy on countries aligning themselves with the Brics group of emerging economies, which includes China and India.

The dollar gained and the 10-year Treasury yield rose. Shares of trade-sensitive companies such as Lululemon, Estee Lauder and Deere declined 2% or more.

"Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy," Trump said.

His post came as leaders of the Brics nations met in Rio de Janeiro. Over the weekend, the group released a statement voicing "serious concerns about the rise of unilateral tariff and non-tariff measures."

Talks between the U.S. and many key trade partners remain in flux. The European Union is aiming for an agreement in principle by Wednesday, when Trump had threatened to raise tariffs for EU imports to 50%.

In recent trading:

U.S. stocks fell nearly 1%, with the Dow Jones Industral Average down 422 points, or 0.9%. The S&P 500 and Nasdaq Composite fell 0.8% and 0.9% respectively, amid a weakening in a cross-section of industries. The S&P and Nasdaq hit record highs last week ahead of the July Fourth holiday on which Trump's megabill was signed into law.

Tesla shares dropped 6.8% after Trump ridiculed Elon Musk's new political party.

The WSJ Dollar Index strengthened. The euro and the Japanese yen weakened.

Treasury yields moved higher. They settled at 4.394%, up from 4.339% Thursday.

Bitcoin traded around $108,000, not far off record highs.

The CBOE Volatility Index rose about 9.5%, but remained far off the Liberation Day highs hit in April.

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(END) Dow Jones Newswires

July 07, 2025 16:09 ET (20:09 GMT)

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