Trump threatens Japan with a 35% tariff, Nvidia stock drops, but still tops the market

Big news hit the markets this week. Former U.S. President Donald Trump has threatened to slap a 35% tariff on cars from Japan if he returns to office. That’s a huge move that could shake up global trade. Meanwhile, Nvidia, one of the top tech giants, saw its stock drop by almost 3% over two days. Still, it kept its crown as the most valuable company in the world by market cap.

So, what’s going on? Why is Nvidia still on top despite the fall? And how are other big players like Ford, AstraZeneca, and Santander reacting to all this market noise?

Let’s break it all down. We’ll talk about Trump’s tariff threat, Nvidia’s position in the stock market, and what’s moving shares across different sectors.

Trump’s Tariff Threat Shakes Markets 

We start with big news: Donald Trump has threatened to impose tariffs as high as 35% on Japanese imports starting July 9, unless a trade deal is reached. He specifically targets cars, rice, steel, and aluminum. Negotiations have stalled. Japan remains firm on protecting its farmers and auto makers.

This threat hit Tokyo’s markets hard. The Nikkei index fell, and the yen weakened to around 144 per dollar amid the news. In Japan, leaders warned that such steep tariffs would harm exporters. Prime Minister Shigeru Ishiba vowed to protect farmers and his auto industry.

In the U.S., investor spread talk: A big jump in duties could hit share prices of automakers like Toyota, Honda, and even U.S. parts suppliers. We’re watching how markets react next week. If a deal doesn’t come, global trade could feel real pain.

Nvidia Dips, Still Reigns Supreme 

Next, let’s talk Nvidia. Its stock has slipped by about 3% over the past two days. While small, it signals a pause after a big rally. The drop might reflect profit-taking, export control worries, or a broader tech sell-off.

Yet despite this dip, Nvidia remains the world’s most valuable company. It has a market cap of nearly $4 trillion. Under the surface, insiders have sold over $1 billion in shares, driven by gains from AI demand.

Still, we think the long-term story remains strong. Nvidia continues to benefit from:

1. AI chip demand - Its chips power large-scale AI systems and data centers.

2. New growth areas - Industrial AI, humanoid robotics, and sovereign AI are gaining attention.

3. China export adjustments - Although restrictions apply, the company has shifted its focus to new markets.

The dip seems more like a breather than a crash. We’ll watch upcoming earnings, product reveals like Blackwell chips, and how strong this AI-driven demand holds up.

Other Market Movers

AstraZeneca

AstraZeneca shares jumped nearly 2.8% on July 1 after reports that CEO Pascal Soriot plans to shift listing from London to the U.S.. This could unlock higher U.S valuations and simplify access to American markets. The plan faces resistance from UK officials, but U.S. ADRs have already hit the boost, rising over 2%.

Why this matters: AstraZeneca earned $54 billion in revenue last year, with nearly half from the U.S.  A U.S. listing may speed up investment in biotech and drug approvals. But it also means less exposure to the FTSE 100 and British financial clout.

Constellation Brands

Constellation Brands (makers of Corona beer, Modelo, and more) recently released earnings updates. Their Q3 report surprised the markets, boosting stock because of strong premium beer and tequila sales. Though no tariff issue here, they benefit from stable consumer demand and holiday‑season volume.

Ford

Ford even felt the tariff tension from Trump's threat. If new tariffs hit Japan, U.S. parts costs could rise. Ford is still expanding its EV lineup, but margin risk stays real. We’re keeping an eye on how Ford’s stock reacts if any import duties on parts go through.

Santander

Banco Santander made headlines by agreeing to buy the UK’s TSB bank for £2.65 billion. This strike aligns with Santander’s aim to grow overseas. The move signals strength in international expansion, with global interest rate worries and uneven loan demand.

Greggs

In the UK, Greggs (the bakery chain) saw warnings on profits from rising food costs and inflation. The company stated that higher ingredient prices and staff wages are impacting earnings. Still, they continue to open new stores, leaning on strong brand loyalty in a tight retail market.

Conclusion & What We Watch Next 

This week brought clear signals:

• Trump is applying pressure, and tariffs could reshape trade by July 9, especially with Japan and the auto sector ripple effects.

• Nvidia took a small hit. But its long-term AI story looks solid.

• AstraZeneca could shift its listing and open new doors in U.S. markets.

• Companies like Ford, Santander, and Greggs are navigating mixed pressures from tariffs, acquisitions, inflation, to global growth.

We’ll be watching these next steps closely. Will Trump push tariffs further? Can Nvidia bounce higher when earnings and the Blackwell chips shine? Will AstraZeneca complete a bold move to the U.S.? Watch this space, it may shape your portfolio.

Frequently Asked Questions (FAQs)

What is the tariff rate in Japan?

Japan's average tariff rate is around 2.5%. But it can be higher for farm products like rice and meat. Industrial goods often have lower or no tariffs.

What is the US-Japan tariff agreement?

The U.S.-Japan tariff agreement lowers taxes on some goods. The U.S. cut tariffs on Japanese items like machines. Japan lowered tariffs on U.S. beef, pork, and cheese.

What is Japan's tariff on rice?

Japan’s tariff on imported rice is as high as 778%. This protects local farmers and makes foreign rice more expensive in Japan.

How much are Japan's import fees?

Japan’s import fees include customs duty, a 10% consumption tax, and other small charges. The exact amount depends on the product type and value.