President Trump said the U.S. will begin sending letters Monday to other countries setting a tariff rate on their imports.
European stocks, and U.S. stock futures, fell Friday as Trump warned the letters were coming.
Catch up quick: Trump told reporters late Friday aboard Air Force One that about a dozen letters would go out Monday.
At that time, his administration promised 90 trade days in 90 days.
What we’re watching: It’s not clear how aggressive Trump intends to be with these new tariff rates.
According to President Trump, the U. A. will start writing letters to other nations on Monday to establish a tariff rate for their imports.
Why it matters: Trump is suddenly intensifying the trade war again after months of threats.
The action may upset the balance once more for companies that need certainty after a recent period of relative calm.
Additionally, financial markets that have mostly transitioned to a post-tariff world are exposed to a new risk. European stocks as well as U. A. As Trump threatened to send the letters, stock futures dropped on Friday.
Quick recap: Trump informed reporters on Air Force One late Friday that roughly a dozen letters would be sent on Monday.
He did not specify the countries that would be singled out or the rates that would be established.
He warned that some of the rates in the letters could reach 70 percent, and on Thursday he stated that they would take effect on August 1.
Indeed, however, the administration has previously employed a similar strategy: adopting a tough stance on impending tariffs, but leaving enough time for trading partners to present last-minute offers that the president would be open to accepting.
Recent reports indicate that a number of trading partners, including Thailand and South Korea, are rushing to accomplish just that.
Flashback: On April 2, Trump announced a new regime of global tariffs, but a week later, he put most of them on hold.
90 trade days in 90 days was a promise made by his administration at the time. With the UK, China, and Vietnam, it made three during the first 85 days.
Trump started saying in mid-May that agreements weren’t actually required because the U. S. . would merely set a rate by sending letters to trading partners in the days that followed.
In mid-June and late-June, he reiterated the same threat, stating that he preferred the letters as a more straightforward solution than intricate negotiations with numerous nations.
Between the lines: While the tariff pause is scheduled to end on July 9, some nations, such as Canada and China, have different deadlines that fall later this month or early next month.
The objective is to complete trade agreements by Labor Day, and Treasury Secretary Scott Bessent has stated that the deadlines are negotiable.
What we’re watching: Trump’s intentions regarding the new tariff rates are unclear.
For instance, a 20 percent rate was included in the Vietnam deal, which was less than half of the initial rate the nation faced in April but twice the global baseline Trump implemented.
