Trump threatens steep Aug 1 tariffs

14 countries given notice of levy hikes

- ANA SWANSON TONY ROMM

President Donald Trump revived his trade war threat with some of America's closest allies on Monday, telling Japan and South Korea that they would face a 25% tax on their exports as of Aug 1 unless they agree to trade deals by then.

Trump also planned to extend the timeline for dozens of other countries to sign deals with the United States or face tariffs, and he was preparing to sign an executive order that would delay the stiff levies that were supposed to snap back today.

Markets dropped after the news, as investors assessed the prospect of more trade conflict with some of America's closest allies and largest trading partners. The S&P 500 dropped as much as 1%. Other major indexes also fell.

In nearly identical letters to the president of South Korea and the prime minister of Japan, Trump wrote that “we have decided to move forward with you, but only with more balanced, and fair, TRADE.”

“Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,” he added.

A few hours later, the president posted several more letters to social media detailing tariff rates that products from other foreign countries would face: 40% for exports from Myanmar and Laos, 30% for exports from South Africa and 25% for exports from Malaysia.

Karoline Leavitt, the White House press secretary, said in a briefing Monday that Trump would sign an executive order extending a pause on his steepest tariffs until Aug 1. She also said the president planned to send letters to “approximately 12 other countries” about the rates they would be expected to pay by that date if they did not negotiate deals, then added that even more countries could expect to receive the letters soon.