Stock markets fall due to US tariff uncertainty

Wall Street's major indexes closed lower on Monday after U.S. President Donald Trump announced sweeping tariffs against Japan, South Korea, and other trading partners, while Tesla shares plummeted after CEO Elon Musk announced plans to launch a political party.

The indices extended their losses after Trump announced tariffs on Japanese and South Korean imports, which will take effect on August 1.

Last week, both the Nasdaq and the S&P 500 closed at record highs for three sessions.

The Dow Jones Industrial Average fell 0.94% to 44,406.36 points; the S&P 500 lost 0.79% to 6,229.98 points; and the Nasdaq Composite closed down 0.92% to 20,412.52 points.

"Markets had been telling us that the peak of tariff risk was over, but the fact that tariffs are back in the spotlight is causing some nervousness," said Emily Roland, chief investment strategist at Manulife John Hancock Investments.

Investors were also awaiting further U.S. trade announcements after Trump said he was close to finalizing several deals and would notify other countries of the tariff increases by July 9, with the new duties taking effect on August 1.

On Monday, Trump threatened to impose an additional 10% tariff on countries that align with the "anti-American policies" of the BRICS group, which includes Brazil, Russia, India, China, and South Africa.

Mexican stock markets lose

Both Mexican stock exchanges worsened their performance at the end of trading on Monday as uncertainty about the global trading outlook increased.

The S&P/BMV IPC index of the Mexican Stock Exchange (BMV) fell 0.96% to 57,423.40 points, while the FTSE-BIVA index of the Institutional Stock Exchange (Biva) fell 0.87% to 1,159.64 points.

Stock baskets fell for the second time in three days and at their fastest pace in just over two weeks.

Investors factored in the fact that light vehicle production in Mexico rose in June for the first time in three months, marking a record volume for a sixth month, driven by a rebound in exports, as domestic sales continued to decline.

In the coming days, traders await data such as industrial production, consumer inflation, and the minutes of the Bank of Mexico's latest meeting.

Other stock markets that fell were the Bovespa of Brazil (-1.26%) to 139,490 points and the Merval of Argentina (-1.38%) to 2,049,934.13 points,

At the opening of Asian stock markets on Tuesday morning, Japan's Nikkei 225 index gained 0.38 percent and South Korea's Kospi index rose 1.51 percent.