Market Summary & Our Perspective - 7.7.25

Market Summary

Today, the market was down as President Trump announced his plan to once again increase tariffs on a multitude of countries. Countries including Thailand, Cambodia, Serbia, South Africa, Kazakhstan, Bangladesh, Indonesia, Bosnia and Herzegovina, Tunisia, Japan, and South Korea were mentioned in the Presidents 14 letters detailing new tariff information that will impact US trade with those nations. Among those letters the markets were blindsided as the news of a 25% tariff on South Korea and Japan was announced. The markets reacted quickly to this news with tech and semiconductor equites plummeting up until the close of the market, and all major indices down .75 – 2%. Today’s events continue to show the volatility that will come along with the Trump Administrations trade policy.

Our Perspective

Today’s events not only showed the impact of US trade policy on global markets, but also highlighted key areas that are especially vulnerable in this environment of trade uncertainty. With most semi-conductor manufacturers being based in Japan, South Korea, and Taiwan, there should be a significant concern around the tariffs being applied to those places. While the tariff rates are lower in Taiwan, the higher rates in Japan and South Korea will potentially have a serious impact on the American tech sector as well as the semiconductor market. Companies such as Apple, Nvidia, and AMD rely heavily on foreign manufacturing for their chip production. Additionally, this increase in the cost of manufacturing will most likely be passed down to the consumer, contributing to the already high prices for tech goods, and could possibly lead to a sustained decrease in sales. Overall, the impact of the US tariff announcements were clearly illustrated by the reaction of the stock market, and these tariffs also highlight the tech sectors reliance on foreign manufacturing and production.

*The views expressed in this article are for informational and analytical purposes only and do not constitute financial advice. All opinions reflect current market interpretations and are subject to change based on new developments. Quantovate AI is not a registered investment advisor. Please conduct your own research or consult with a financial professional before making investment decisions.