Trump Delays Tariffs but Renews Threats Against Trading Partners
On Monday, US President Donald Trump signed an executive order once again delaying his “reciprocal” tariffs, this time until 1 August. Read more about this and other news below.
Trump Delays Tariffs, Again
After introducing sweeping tariffs on major trading partners in his “liberation day” announcement in April, President Trump paused the majority of those duties for 90-days.
That 90-day pause was due to end tomorrow, 9 July. However, last night, Trump extended the deadline until 1 August, allowing countries additional time to negotiate trade agreements with the US.
Nevertheless, the president also renewed threats to hit trading partners with high tariffs, sharing letters on social media which were addressed to the leaders of 14 countries, including Japan and South Korea.
The letters outlined levies which were similar to those declared in April but stated that they could move “upward or downward, depending on our relationship with your country”. More letters are expected to be sent out over the coming days.
Earlier on Monday, Trump also threatened extra tariffs of 10% on countries which align themselves with “the Anti-American policies" of BRICS, a group of 11 countries including Brazil, Russia, India and China.
Following the latest tariff-related news from the White House, Wall Street closed lower on Monday. The S&P 500, Nasdaq and Dow Jones fell 0.79%, 0.92% and 0.94% respectively.
Tesla Leads Wall Street Declines
Leading yesterday’s declines was Tesla. The Electric Vehicle (EV) manufacturer slumped 6.79% during the session, making it Monday’s worst performer in the S&P 500 and the Nasdaq.
Monday’s losses came after CEO Elon Musk announced he intended to launch a new political party named the “America Party” to challenge the Republicans and Democrats. President Trump labelled the idea “ridiculous”.
Furthermore, in a note published on Monday morning, William Blair analyst Jed Dorsheimer downgraded Tesla stock from Outperform to Market Perform.
The analyst cited the elimination of EV tax credits, which could impact demand, and the removal of regulatory credits, which have contributed significantly to Tesla’s profitability in recent years.
After reacting positively to Trump’s election victory in November, Tesla shares have struggled in 2025. Year to date, share price is down more than 27%.
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