Trump Reignites Global Trade War, Slaps 25% Tariff on Key U.S. Allies

(Evan Vucci/AP photo)

President Donald Trump announced on Monday that he was sending letters to two key U.S. allies, announcing new 25% tariffs on trade with the U.S.

Axios reported on the letters and noted that “Trump is abruptly re-escalating the trade war” by sending the letters to South Korea and Japan, announcing the sweeping new tariffs to go into effect on August 1.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge. Please understand that these Tariffs are necessary to correct the many years of Japan’s Tariff, and Non Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States. This Deficit is a major threat to our Economy and, indeed, our National Security!” Trump wrote to the prime minister of Japan.

Letters were also sent out to Malaysia, Kazakhstan, South Africa, Laos, and Myanmar — all announcing massive new 25% tariffs. White House Press Secretary Karoline Leavitt told reporters during Monday’s briefing that she expected 14 letters to go out in total, which would no doubt reignite the global trade war that rocked international markets during the Spring.

Leavitt also said Trump would sign an executive order extending his 90-day pause on new tariffs kicking in on Wednesday until August 1st. Trump promised 90 new trade deals in 90 days following his “Liberation Day” announcements in April; those deals have so far yet to materialize — other than an understanding with the UK and Vietnam.

The  Dow Jones Industrial Average dropped some 600 points on Monday afternoon, following the announcement of new tariffs.

This is a developing story and has been updated.