US stocks open lower as Trump threatens additional tariffs on BRICS nations

US equities lose 0.5% to 0.8% as Trump takes aim at BRICS.
Final trade offer letters are sent to negotiating partners on Monday.
Bessent says nations may continue negotiations until tariffs begin on August 1.
Trump and Bessent criticize Musk's move to found America Party.

Clay Webster FXStreet

US stock market indices opened lower on Monday following the Fourth of July holiday last Friday. US President Donald Trump threatened to lob another 10% tariff on BRICS-aligned countries, and the President said his final trade offers will be sent to respective countries at 12:00pm EST before his July 9 deadline.

President Trump's Truth Social account June 6, 2025

President Trump's Truth Social account on June 6, 2025

That Wednesday deadline, which comes from Trump's 90-day tariff pause on April 9, seems to have been pushed back somewhat after Treasury Secretary Scott Bessent said on Sunday that the administration would consider trade partners' offers until August 1, when the tariffs are scheduled to commence. In a certain sense, this then unofficially extends the tariff deadline by three weeks, which might aid equity markets in the interim.

The Dow Jones Industrial Average (DJIA), S&P 500 (SPX) and NASDAQ Composite (IXIC) all pulled back between 0.5% and 0.8% in Monday's morning session.

US stock market news: Dow Jones, S&P 500, NASDAQ

The BRICS organization is viewed by Trump and Washington as a competitor for global financial leadership with the G7, which represents the interests of seven mostly Western nations. Originally encompassing Brazil, Russia, India, China and South Africa — where the acronym BRICS comes from — Ethiopia, Iran, Egypt, the United Arab Emirates and Indonesia have all formally joined the organization. Another ten partner states, including Nigeria, Malaysia, and Vietnam, are likely to join the group eventually, and nations as diverse as Saudi Arabia, Turkey and Pakistan are considering invitations to join.

President Trump's Truth Social account on July 6, 2025

Because Trump's threat singles out "Any Country aligning themselves with the Anti-America policies of BRICS", it would appear that the 10% additional tariff would impact at least 20 nations and possibly as many as 29.

Vietnam was able to obtain a trade deal last week that left it with a 20% tariff on exports to the US, which was better than the 46% rate that the Trump administration unveiled in early April. However, Trump's new threat could push it up to 30%.

In other news, Elon Musk's announcement of a new political party — the America Party — over the weekend has battered Tesla's (TSLA) share price. Tesla stock sank as much as 8% on Monday after Bessent and Trump both belittled Musk's third-party concept, which the Tesla CEO said was necessary after the President's Republican Party passed a tax bill that balloons the nation's deficit.

Azoria CEO James Fishback delayed his firm Azoria Partners' Tesla-focused ETF after Fishback criticized Musk's move and suggested the Tesla board should curtail his political overtures.

A bright spot for equities is that the Bessent said on CNN's State of the Union program on Sunday, “We’re going to be very busy over the next 72 hours." This was taken to mean that this week might see trade deals formalized with some 18 nations with which the US is negotiating. South Korea has asked for a deadline extension, and Trump has complained about negotiations with Japan over the past few weeks.

NASDAQ Composite (candlesticks), S&P 500 (red), Dow Jones (purple) YTD performance

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD bulls seem hesitant near 0.6950

AUD/USD attracts some buyers for the second straight day, though it remains confined within Friday's broader range amid mixed cues. The US PCE data and the US NFP report released last week tempered October Fed hike bets, dragging US bond yields away from multi-year highs and keeping US Dollar bulls on the back foot. However, geopolitical uncertainty is a tailwind for the safe-haven buck, while the RBA's cautious outlook caps the Aussie.

USD/JPY holds losses below 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY holds losses below 158.00 in the Asian session on Monday, trading within a one-week-old range. The pair remains weighed down by hawkish BoJ expectations amid looming intervention risks that support the Japanese Yen, while geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, limiting the pair's downside.

Gold trades with positive bias around $4,150; upside seems capped

Gold attracts some dip-buyers at the start of a new week, though it remains confined in a familiar range held over the past week or so. Against the backdrop of soft US PCE data, Friday's weak US NFP report tempered bets of an October Fed rate hike. This, in turn, drags US bond yields away from multi-year highs and benefits the non-yielding bullion. The US Dollar, however, draws support from geopolitical uncertainties and could act as a headwind for the precious metal.

Why the US Dollar keeps climbing despite weaker jobs data

The US Dollar’s (USD) rally remained everything but abated, climbing for the third consecutive week and reaching levels last seen in April 2025. The move higher came on the back of a mixed performance in US Treasury yields, extending their rally in the belly and long end of the curve while losing some momentum at the short end.

WTI drops to near $89.00 as G7 taps emergency reserves

West Texas Intermediate oil price extends its losses for the second successive day, trading around $89.30 during Asian hours on Monday. Crude oil prices experienced a decline after G7 nations agreed to release 100 million barrels of crude and diesel from emergency reserves, pledging to avoid energy export restrictions following pressure from US President Donald Trump.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.