President Donald Trump has announced a new round of sweeping tariffs, declaring a 30% duty on all imports from Mexico and the European Union—two of the United States’ largest trading partners. The decision marks a significant escalation in his ongoing trade campaign, which has sparked global uncertainty since his return to office in January.
In a public letter addressed to European Commission President Ursula von der Leyen, posted on his Truth Social platform, Trump stated, “The United States of America has agreed to continue working with the European Union, despite having one of our largest Trade Deficits with you. Nevertheless, we have decided to move forward, but only with more balanced and fair TRADE.”
The new tariffs, set to take effect August 1, are part of a broader series of trade actions announced this week. Since Monday, Trump has threatened duties as high as 40% on multiple countries, while offering few details and frequently changing terms. His letter to the EU confirmed that all imports will be affected by the 30% tariff, except for certain “Sectoral Tariffs” such as the previously announced 25% duty on automobiles.
Von der Leyen responded firmly, warning that the proposed tariffs would disrupt supply chains and harm businesses and consumers on both sides of the Atlantic. “The EU will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said in a statement.
French President Emmanuel Macron also urged the European Commission to prepare strong responses, calling on the bloc to “mobilise all instruments,” including anti-coercion tools, if a resolution is not found by the deadline.
Mexico Responds to Tariff Threats
Mexico, which has largely benefited from tariff-free access under the United States-Mexico-Canada Agreement (USMCA), now faces steep new barriers. In a letter to Mexican President Claudia Sheinbaum, Trump linked the tariffs to his ongoing efforts to stem the flow of fentanyl into the U.S. “Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” he wrote.
Mexican Economy Minister Marcelo Ebrard said in a social media post that his country had expressed strong objections during a meeting with U.S. officials on Friday. President Sheinbaum, speaking in Guaymas, emphasized that talks were ongoing and she remained confident a deal could be reached to avoid the tariffs.
“The letter clearly states that the aim is to reach an agreement so that these tariffs are not imposed,” she said.
Retaliation and Trade Risks
In his messages, Trump warned that any retaliatory tariffs imposed on U.S. goods would result in even steeper penalties. “Whatever the number you choose to raise [tariffs] by, will be added onto the 30% that we charge,” he wrote, blaming both tariff and non-tariff barriers for the escalating dispute.
Particular U.S. criticism has been aimed at the EU’s digital services taxes, which target gross revenue of online platforms operating across borders. Trump has long argued these taxes unfairly harm U.S. tech giants.
Back in May, Trump threatened a 50% tariff on EU imports if negotiations failed. Treasury Secretary Scott Bessent supported the stance, saying the EU’s proposals had been lacking compared to other trading partners. On Saturday, Bessent praised the UK for having “smartly secured an early deal.”
Economic Impact
The EU is the U.S.’s largest trading partner, with nearly $976 billion in two-way goods traded in 2024. Mexico accounted for approximately $840 billion, while trade with Canada totaled just over $762 billion, according to the U.S. Trade Representative’s office.
The sudden imposition of tariffs has left global businesses and financial markets on edge. Analysts warn that the lack of a clear and consistent trade policy may deter long-term investment and slow growth.
As of Saturday evening, the EU and Mexico remain in talks with U.S. officials, with less than three weeks before the tariffs are scheduled to go into effect. Observers are closely watching how these negotiations unfold—especially as Trump has indicated more tariff announcements may soon follow.
