Ah, the stock market. A bastion of calm, predictable rationality, right? Not when Donald J. Trump is in the news. Today, July 7, 2025, the financial world once again found itself performing a familiar dance: the rapid, often bewildering, adjustment to the former President’s latest pronouncements. From fresh tariffs to a renewed feud with a certain tech titan, the market’s reaction was less a gentle sway and more a full-blown cha-cha, leaving investors wondering if they should buy the dip or simply buy a bunker.
The Tariff Tango: Japan, South Korea, and the Global Jitters
Just when you thought global trade tensions might be settling into a comfortable, simmering background hum, President Trump decided to crank up the heat. In a move that sent shivers down the spines of international economists and probably caused a few traders to spill their morning coffee, he announced a hefty 25% tariff on goods from Japan and South Korea. These new levies, communicated via official letters and, naturally, a post on his beloved Truth Social platform, are set to take effect on August 1.
The market, ever the sensitive soul, reacted with predictable dismay. The Dow Jones Industrial Average, that venerable barometer of American industry, tumbled a significant 533.75 points, or 1.19%, to close at 44,290.86. Not to be outdone, the S&P 500 declined 60.72 points, a 0.97% drop, settling at 6,215.29, while the tech-heavy Nasdaq Composite shed 210.57 points, or 1.02%, closing at 20,378.44. It seems the prospect of a trade war with key Asian allies isn’t exactly a bullish signal. Futures for these indices had already shown weakness in pre-market trading, with the S&P 500 down 0.3% and Nasdaq futures sliding 0.5%, indicating the early jitters were well-founded.
Analysts, ever the purveyors of sober reality (or at least, attempts at it), were quick to weigh in. Nomura Group, for instance, noted that markets are expected to remain volatile as the July 9th deadline for the 90-day pause on reciprocal tariffs expires for non-China trading partners. Stephen Innes, managing partner at SPI Asset Management, eloquently summarized the situation: “The path forward isn’t clear, but the terrain is littered with risk.” One might even say it’s a minefield, but that might imply too much strategic planning. The “TACO trade” strategy, where investors buy into the market when Trump announces steep tariffs assuming they’ll dip and then rebound, is apparently still a thing. One has to admire the resilience, or perhaps the masochism, of those who bet on the consistency of inconsistency.
BRICS and the Art of the Deal (or Lack Thereof)
As if targeting Japan and South Korea wasn’t enough to keep global trade desks busy, President Trump also decided to throw a rhetorical wrench into the gears of the BRICS nations. He threatened an “additional 10% tariff” on any country aligning itself with what he termed “Anti-American policies” of the BRICS group. This broadside, also delivered via Truth Social, comes hot on the heels of the BRICS summit in Brazil, where leaders from Brazil, Russia, India, China, South Africa, and newly expanded members like Egypt, Ethiopia, Iran, and the United Arab Emirates, took a collective swipe at “unilateral tariff and non-tariff measures which distort trade.”
The irony, of course, is not lost on anyone with a pulse. While the BRICS nations are busy condemning “indiscriminate rising of tariffs,” President Trump is busy, well, indiscriminately raising tariffs. This latest threat further fueled fears of a full-blown global trade war, causing US stocks to open lower and even sending precious metals, typically a safe haven, falling. It’s a classic Trumpian move: keep everyone guessing, keep everyone on edge, and then declare victory, regardless of the actual state of play. The dollar, however, managed to strengthen by 0.2% against this backdrop, perhaps indicating that in a world of trade chaos, the greenback still reigns supreme.
Tech Titans and Truth Social Tangles: Elon Musk’s Wild Ride
Beyond the geopolitical chess match, there’s always time for a good old-fashioned billionaire brawl. This time, the sparring partners were none other than Donald Trump and Elon Musk, whose on-again, off-again bromance has more twists than a pretzel factory. Musk, fresh off announcing his intention to form a new political entity dubbed the “America Party,” found himself on the receiving end of Trump’s digital ire.
Posting on Truth Social (where else?), Trump declared Musk had gone “completely ‘off the rails'” and was “essentially becoming a TRAIN WRECK over the past five weeks.” He scoffed at the idea of a third political party, stating they “have never succeeded in the United States” and are only good for “complete and total DISRUPTION & CHAOS.” This, coming from the man who perfected the art of disruption, is a masterclass in observational sarcasm, albeit unintentional.
The market, however, took the spat seriously. Tesla (TSLA) stock, always sensitive to Musk’s extracurricular activities, tumbled nearly 7% in pre-market trading, wiping out approximately $70 billion in market value. Shares opened at $328.01 and quickly sank to $305.25, a 6.96% plunge. Analysts were quick to point out the obvious: William Blair downgraded TSLA to “market perform,” citing the “negative impact on stock from elimination of incentives for automakers for greener vehicles and the removal of the $7,500 EV tax credit” (a direct result of Trump’s “One Big Beautiful Bill” which Musk had criticized). Wedbush’s Dan Ives pulled no punches, stating that Musk “diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take.” Bernstein Research simply declared, “This is not a Tesla issue—it’s a Musk issue. Investors are exhausted.” Art Hogan, chief market strategist at B Riley Wealth, summed it up perfectly: “Tesla investors are starting to vote their displeasure with him getting back into politics.” It seems even the most ardent fans of innovation prefer their CEOs to focus on, you know, making cars, rather than making political parties.
The Predictably Unpredictable Future
So, what’s the takeaway from this latest episode in the Trump market saga? If there’s one constant, it’s volatility. The market, like a well-trained Pavlovian dog, reacts instantly to every tweet, every Truth Social post, and every tariff threat. The dance continues, with investors attempting to discern signal from noise in a cacophony of policy flip-flops and personal feuds. As the July 9th tariff deadline looms, and the August 1st implementation date for new tariffs approaches, one can only assume the market will continue its wild gyrations. Because in the world of Trump, the only thing predictable is the sheer unpredictability of it all, and the consistent, if sometimes absurd, market reaction to it. Stay tuned for the next episode, likely delivered via a 280-character missive or a 25% tariff increase.
DISCLAIMER: We read Trump’s posts so you don’t have to. This is comedy meets market data, not financial advice. Not political advice either – we just like charts and chaos.
Elana Harper is a seasoned financial editor and market analyst with over a decade of experience covering global equities, economic trends, and corporate earnings. Known for her sharp insights, Elana specializes in making complex financial topics accessible to a broad audience. She now serves as the Senior Financial Editor at Stock Market Watch, where she oversees daily market coverage and political commentary.