Trump raising tariffs on China another 10%, citing flows of illegal drugs

• The move comes against a backdrop of sinking consumer confidence, with more Americans expecting inflation to rise sharply (again) and citing tariffs as the reason why.

Driving the news: Trump announced the new tariffs in a Truth Social post.

• "Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China," Trump wrote.
• He also said scheduled 25% tariffs on imports from Canada and Mexico would go into effect Tuesday as well.
• There was some confusion Wednesday, based on comments Trump made at a Cabinet meeting, about whether those tariffs were still on or not.

By the numbers: Stocks dropped, bond yields rose, and the U.S. dollar surged after Trump's post Thursday.

Flashback: On the campaign trail, Trump talked of a 60% tariff on Chinese imports. Later, he suggested another 10% in tariffs on top of that, specifically because of the fentanyl issue.

• He ultimately held off on the larger levy, and imposed just the 10% tariff on China, earlier this month.
• At the same time he also announced the Canada and Mexico tariffs, but temporarily suspended those after both countries' leaders took initial steps to curb drug flows.

Editor's note: This is a breaking news story. Check back for updates.