Trump Escalates Trade War with Upcoming Tariff Hikes

President Trump has informed several countries, including Japan, South Korea, and other minor exporters, of increased U.S. tariffs set to begin on August 1. This intensifies the trade conflict initiated earlier in the year. Countries have until then to negotiate deals, amid market upheaval and economic uncertainty.

President Donald Trump announced that sharply higher U.S. tariffs will commence on August 1, signaling a new phase in the trade war with countries like Japan and South Korea. This move affects 14 countries and has sent financial markets into a state of uncertainty.

The White House extended the deadline for negotiations to August 1, offering trading partners a brief window to reach an agreement before tariffs take effect. Two agreements have been made with Britain and Vietnam, while talks with other nations continue.

Markets reacted negatively to the tariff news, with the S&P 500 closing down 0.8%. Tariff announcements have roiled markets consistently this year, pushing them close to bear territory before eventual rebounds. More announcements are expected over the next 48 hours.

(With inputs from agencies.)