President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting August 1, after weeks of negotiations with the US's main trading partners failed to result in a comprehensive trade agreement.
Amid escalating trade war tensions, which have angered US allies and alarmed investors, Trump announced the new tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, which were published on Saturday on his social media Truth Social.
The EU and Mexico called the tariffs unfair and destructive and promised to continue negotiations with the US on a broader trade agreement before the deadline.
The EU is the largest foreign trade partner of the US. In 2024, according to the US Trade Representative's office, the country's trade deficit with the EU was $235.6 billion. The parties planned to reach an agreement by July 9, but no agreements have been announced so far.
Von der Leyen stated that the 30% tariffs would "disrupt critical transatlantic supply chains, harming businesses, consumers, and patients on both sides of the Atlantic." She also noted that while the EU will continue to work on reaching a trade agreement, it will "take all necessary measures to protect the EU's interests, including adopting proportional countermeasures if required."
This week, Trump sent similar letters to 23 other trading partners, including Canada, Japan, and Brazil, setting general tariff rates from 20% to 50%, as well as 50% tariffs on copper.
The deadline set for August 1 gives countries time to negotiate agreements that could reduce the threatening tariffs.
As Reuters writes, the flow of letters shows that Trump has returned to the aggressive trade stance he took in early April when he announced a series of retaliatory tariffs against trading partners, which led to market crashes before the White House postponed their implementation.
The US President promised to use the 90-day delay in April to conclude dozens of new trade agreements, but so far has only concluded framework agreements with the UK, China, and Vietnam.
Meanwhile, Mexico sends more than 80% of all its exported goods to the US, and free trade with its northern neighbor has led to Mexico surpassing China in 2023 to become the US's largest trading partner.
The cascade of Trump's tariff orders since his return to the White House has begun to bring the US government tens of billions of dollars a month in new revenues, notes Reuters. According to US Treasury Department data released on Friday, US customs duty revenues exceeded $100 billion in the federal fiscal year ending in June.