Donald Trump has declared that the European Union and Mexico will face a 30% tariff on imports to the United States starting August 1, escalating tensions in ongoing trade disputes with America’s major trading partners.
The former president and Republican frontrunner for the 2025 election warned that higher tariffs could follow if the EU or Mexico retaliate.
The EU, the US’s largest trading partner, had earlier expressed hopes of finalizing a trade deal with Washington before the August deadline. Talks have been ongoing, with no clear resolution as of yet.
Trump also announced new tariffs on imports from Japan, South Korea, Canada, and Brazil, to take effect the same day. According to reports, similar notices were sent to several smaller trade partners, signaling a sweeping escalation in protectionist trade policies.
In a letter addressed to European Commission President Ursula von der Leyen, Trump wrote:
“We have had years to discuss our trading relationship with the European Union, and have concluded that we must move away from these long-term-large, and persistent, trade deficits, engendered by your tariff, and non-tariff, policies and trade barriers.”
“Our relationship has been, unfortunately, far from reciprocal,” he added.
Trump has frequently criticized the EU over what he calls unfair trade practices. Back in April, he proposed a 20% tariff on EU goods, later threatening to increase it to 50% as talks stalled.
Although both sides had set a July 9 deadline to reach a resolution, no agreement has been announced. According to the US Trade Representative’s office, the 2024 trade deficit with the EU stood at $235.6 billion.
In response, von der Leyen reiterated the EU’s willingness to negotiate, saying:
“We remain ready to continue working towards an agreement by Aug 1.”
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices. We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Tensions with Mexico Mount
In a separate letter to Mexico’s President, Trump criticized the country’s efforts on border control, saying it had not done enough to stop the region from becoming a “Narco-Trafficking Playground.”
“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump wrote.
Mexico condemned the tariff threats on Saturday, describing the move as “an unfair deal.”
