04:19 PM EDT, 07/07/2025 (MT Newswires) -- US benchmark equity indexes closed lower on Monday after President Donald Trump implemented 25% tariffs on imports from Japan and South Korea.

The Nasdaq and S&P 500 declined 1% each to 20,393.02 and 6,219.55, respectively. The Dow Jones Industrial Average fell 1.2% to 44,300.38. Among sectors, utilities and consumer staples were the only gainers, while consumer discretionary had the steepest decline.

US Treasury yields were higher, with the 10-year rate increasing 4 basis points to 4.39% and the two-year rate rising 1.3 basis points to 3.91%.

August West Texas Intermediate crude oil gained 2.3% to $68.03 a barrel on Monday.

President Trump disclosed his July 7 letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung via Truth Social posts, saying the duties take effect Aug. 1. The tariffs will be in addition to sectoral levies, he said.

"Please understand that the 25% number is far less than what is needed to eliminate the trade deficit disparity we have with your country," Trump told the two leaders in separate letters.

Trump told the leaders of Japan and South Korea that any retaliatory increases in tariffs on US products will result in similar hikes in addition to the 25% rate charged by Washington.

In company news, Tesla (TSLA) shares were down 6.8%, the worst performer in the S&P 500. Chief Executive Elon Musk announced that he is launching a new US political party, a move that Wedbush Securities said could raise investor concerns about its potential impact on the electric vehicle maker.

Dow (DOW) shares fell 3.4%. The company said its board of directors has approved the shutdown of three upstream assets in Europe as well as certain corporate and other assets globally. Dow will record charges ranging from $630 million to $790 million, and about 800 employees will be impacted.

Uber ( UBER ) shares were up 3.2% after Wells Fargo raised its price target on the company's stock to $120 from $100. The firm maintained its overweight rating.

Gold increased 0.1% to $3,346.20 per troy ounce, and silver was down 0.4% to $36.96 per troy ounce.