Trump Doubles Down: New Tariffs Ignite Global Trade War Fears

Markets brace for impact as the former president slaps fresh levies—because nothing says 'economic diplomacy' like unilateral trade nukes.

Tariffs as a weapon: The art of the deal gets explosive

Supply chains scramble while lobbyists cheer—somebody's gotta profit from the chaos.

Bonus jab: Wall Street analysts already pricing in the next bailout package.

Cryptocurrencies Feel the Impact

At the time the article was written, the price of Bitcoin$0.000052 had dropped to $107,906, marking it the lowest point in the last 24 hours. Alongside the announcement of a 25% tariff on Japan and South Korea, Trump declared these would take effect on August 1. The recent elections in Japan had stalled tariff negotiations, with U.S. officials suggesting that an agreement might not even be feasible. With this announcement, both countries are now subject to new rates, sparking concerns regarding inflation and a potential further decline in cryptocurrency values.

“I will impose a 25% customs duty on Japan. The customs duty on Japan will be effective August 1. We will apply a 25% customs duty on South Korean goods.”

“If they increase customs duties, we will add these percentages over 25%.”

Implications of Tariff Uncertainty

While the clarification of tariff uncertainties might seem beneficial, double-digit rates are anticipated to impact inflation significantly. Given that even Japan and South Korea have been distanced from agreements, the European Union might resist reducing its existing rates more vigorously, potentially exacerbating tensions.

Trump had previously mentioned that sending ultimatum-like letters was a simpler solution compared to formulating agreements. During the prior week, negotiation letters were dispatched, but the recent ones now encapsulate the final terms, marking what could be considered an endpoint to preliminary discussions.