U.S. stocks opened lower Monday, with investors reacting to heightened geopolitical tensions and a fresh wave of policy uncertainty out of Washington. At the opening bell, the Dow Jones Industrial Average slipped 73.25 points, or 0.16%, to 44,755.3. The Nasdaq Composite dropped 91.54 points, or 0.44%, to 20,559.6, while the S&P 500 declined 18.37 points, or 0.29%, to 6,260.98.

The early declines come on the heels of a pointed announcement from President Donald Trump, who warned that any country aligning itself with the BRICS economic bloc would be subject to an additional 10% tariff on exports to the U.S. The policy, which the president described as allowing “no exceptions,” represents a hardening of the administration’s stance as BRICS leaders gather in Brazil for a summit focused on reducing global reliance on the U.S. dollar.

“This move is seen as a direct response to the BRICS summit, where leaders...are renewing calls for a more multipolar world order and reduced dependence on Western financial systems,” according to a briefing compiled from the summit agenda and White House communications.

The announcement adds a new layer of trade-related risk just as the temporary suspension of tariffs on many U.S. trading partners is set to expire July 9.

Analysts warn that these developments could accelerate global supply chain realignments. In a note issued today, Apollo Global Management Chief Economist Torsten Slok observed that “since December 2024, the share of China’s exports going to the U.S. has declined from 15% to 9%,” while shipments to Asia, Europe, and Latin America have grown. The shift illustrates the broader trend of trading partners diversifying away from the U.S. market in anticipation of volatility in tariff policy.

Adding to the morning's unease, investors are also digesting news from Tesla. A weekend report from Wedbush Securities warned that CEO Elon Musk’s launch of a new political entity—the “America Party”—may distract from Tesla’s operations and worsen the company’s already tense relationship with the Trump administration. Wedbush analysts noted that “this is not the news we want to see as it adds another perceived overhang to the stock,” and cautioned that Musk’s political activism “will be viewed as a disruptive (for Tesla) and political gamble” heading into the 2026 midterm elections.

So far, the broader market reaction has been cautious. Despite today's declines, more than 78% of stocks on major U.S. exchanges remain above their 50-day moving average, and 61.7% are above their 200-day average—signs that longer-term sentiment has not yet reversed.

Still, with trade policy uncertainty on the rise and corporate governance concerns resurfacing, Monday’s market tone underscores investors’ sensitivity to political risk as the second half of 2025 begins.