US stock markets fell sharply on Monday after President Trump announced he would raise his global tariff rate to 15%, up from 10%, following the Supreme Court’s decision to strike down his reciprocal tariffs. The Dow Jones dropped 801 points, or 1.6%, the Nasdaq declined 1.2% and the S&P 500 shed 1.1%, with software stocks including Microsoft and Salesforce among the hardest hit as AI disruption concerns continued to weigh on sentiment.
Trump doubled down on his tariff stance, warning on Truth Social that any country looking to take advantage of the Supreme Court ruling would face even higher duties. He said the new 15% global tariff would take effect immediately, though it remained unclear whether official documents had been signed. He also indicated additional levies would follow in the coming months.
The European Commission expressed concern over the weekend, saying the current situation is not conducive to fair and balanced transatlantic trade and calling for full clarity from the US government on its next steps. European officials also signaled that existing trade deals with the US could be at risk.
Markets reflected the broader uncertainty. Gold prices climbed roughly 2% in spot markets and nearly 3% in futures as investors sought safe havens amid inflation and growth concerns. Bitcoin fell below $65,000 at one point before partially recovering, remaining down more than 2% on the day.
The tariffs are being imposed under Section 122 of the Trade Act of 1974, which allows the president to apply duties for up to 150 days before Congressional approval is required. Analysts warn that the ongoing uncertainty around tariff policy is likely to remain a disruptive theme for markets throughout the year, with the possibility of further legal challenges ahead.
