US President Donald Trump has announced sweeping new tariffs on imports from the European Union and Mexico, declaring a 30% duty on goods from both trading partners starting August 1.
The move marks a significant escalation in Washington’s increasingly aggressive trade policy, with Trump warning of even higher levies if the EU or Mexico choose to retaliate.
“We have had years to discuss our trading relationship with the European Union,” Trump wrote in a letter to European Commission President Ursula von der Leyen on Friday, adding that the US must “move away from these long-term-large, and persistent, trade deficits” which he blamed on EU tariffs, non-tariff policies, and trade barriers.
The 27-member EU, a frequent target of Trump’s criticism, has expressed dismay over the announcement. Von der Leyen reiterated the bloc’s commitment to reaching a trade agreement by August 1, stressing that the EU “remains open to fair and balanced negotiations.” However, she warned that the EU would “take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
French President Emmanuel Macron voiced “very strong disapproval” of the tariffs, and called on the bloc to “speed up the preparation of credible countermeasures” if talks fail. Italy’s Prime Minister Giorgia Meloni remained optimistic, saying she hoped “a fair agreement” could be reached, while Dutch Prime Minister Dick Schoof called for a “united and resolute” EU response.
The German Association of the Automotive Industry cautioned that the tariffs could increase costs for carmakers and suppliers, warning of “further escalation of the trade conflict”.
The Trump administration’s action comes amid a flurry of trade announcements. Earlier this week, the White House notified Japan, South Korea, Canada, Brazil, and a number of smaller trading partners of upcoming tariffs also set to take effect from August 1.
The proposed 30% tariff on EU and Mexican goods follows an earlier threat in April, when Trump floated the idea of a 20% levy on EU products, raising the possibility to 50% as talks stalled. Trade negotiations between Washington and Brussels had aimed to reach a compromise by July 9, but no progress has been officially reported.
The US trade deficit with the EU stood at $235.6 billion in 2024, according to the office of the US Trade Representative.
Mexico responds to border criticism
In a separate letter to Mexican President Claudia Sheinbaum, Trump criticised Mexico’s efforts to combat drug trafficking, claiming the country had “not done enough to stop North America becoming a Narco-Trafficking Playground.”
“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump stated.
President Sheinbaum expressed hope for a resolution, stating that she believed a deal with Washington was possible. “We are clear on what we can work with the USA and we are clear on what we cannot,” she said. “And there is something that is never negotiated, ever, and that is the sovereignty of our country.”
In a joint statement, Mexico’s economy and foreign ministries called the tariffs an “unfair deal.”
Trump’s letter to Sheinbaum did not clarify whether the proposed tariffs would apply to goods traded under the 2020 United States-Mexico-Canada Agreement (USMCA), although the White House confirmed earlier that similar tariffs on Canada would not apply to USMCA-covered goods.
Despite these developments, Mexico remains optimistic that a resolution could be achieved. “We will, of course, achieve better conditions,” Sheinbaum said.
Trump’s broader trade strategy appears aimed at reshaping global commerce through a series of bilateral agreements. According to White House trade adviser Peter Navarro, the administration aims to secure “90 deals in 90 days.” So far, preliminary pacts have been outlined with the United Kingdom and Vietnam.
With tariff notices now issued to 24 countries and the EU, the scope of the administration’s trade overhaul is unprecedented. However, analysts warn that the threat of retaliatory tariffs and escalating trade wars could further disrupt global supply chains and slow economic recovery.
