Trade Tensions Spark Market Decline Amid Tariff Announcements

Major global stock indexes saw a decline, while the dollar appreciated against key currencies on Monday. President Donald Trump's declaration of a 25% tariff on goods from Japan and South Korea generated apprehension, leading investors to remain watchful as further trade announcements from the White House loom.

The introduction of these tariffs, set to take effect on August 1, caused significant downturns in U.S.-listed shares of Japanese automakers, with Toyota Motor falling 4.1% and Honda Motor dropping 3.8%. Experts predict increased prices and potential slowing of economic growth as businesses delay decisions amid uncertain trade policies.

Adding to the tension, the U.S. Treasury Secretary announced impending trade deals, setting a deadline for Wednesday. Meanwhile, stock indices such as the Dow Jones, S&P 500, and Nasdaq observed substantial losses. Concerns are heightened by potential rate cuts as investors await Federal Reserve and Reserve Bank of Australia meetings this week.

(With inputs from agencies.)