US President Donald Trump has unveiled fresh tariff threats against key US trading partners, announcing a 30% rate on imports from Mexico and the European Union (EU) if the countries do not negotiate more favorable trade terms by August 1.
The announcement was made via two letters posted to social media on Saturday, part of a broader push by Trump to reshape US trade relationships through aggressive tariff diplomacy.
The EU had been in discussions with the US in hopes of finalizing a framework agreement to avoid such tariffs.
However, Trump’s latest communication appears to have dampened expectations for a near-term resolution, although he left the door open to further negotiations.
“If you wish to open your heretofore closed Trading Market to the United States, and eliminate your Tariff, and Non-Tariff, Policy and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” Trump wrote.
The tariffs, if enacted, would apply broadly and are distinct from previously imposed sector-specific tariffs on items such as automobiles and steel.
These new measures could significantly impact the EU’s export competitiveness in the US market, particularly relative to the UK, which has already secured a trade agreement with the Trump administration.
EU negotiations stalled, trade tensions escalate
The EU has faced a shifting stance from Trump in recent months.
Initially, the president proposed a 20% tariff on the EU during his “Liberation Day” event in April. That figure was later reduced to 10% during a 90-day negotiation period.
However, frustration with the pace and content of talks has led Trump to escalate his position, briefly threatening a 50% tariff before settling on the current 30% figure.
Efforts to reach a breakthrough continued earlier this week, with European Commission President Ursula von der Leyen speaking directly with Trump.
EU officials had expressed optimism about finalizing a framework agreement to avert the new tariffs, but Saturday’s letter has raised fresh uncertainty about the likelihood of such a deal.
If implemented, the tariffs would likely place EU exporters at a disadvantage compared to UK-based competitors.
The UK, having exited the EU in 2020, has already established a high-level trade pact with the Trump administration, which could shield it from some of the new duties.
Mexico tariffs linked to border and fentanyl concerns
In a separate letter to Mexican President Claudia Sheinbaum, Trump acknowledged Mexico’s cooperation on border issues but said it was insufficient to prevent a 30% tariff.
The president linked any future adjustments to the tariffs to Mexico’s success in combating drug cartels and reducing the flow of fentanyl into the US.
“These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” Trump wrote, leaving open the possibility of further negotiation.
However, the letter did not clarify whether the new tariffs would include goods currently exempt under the USMCA trade agreement, though exemptions for Canada are expected to remain in place.
Mexico becomes the third country—after Canada and Brazil—to receive formal communication regarding tariff policies despite not facing imminent hikes under the earlier July 9 deadline.
Other nations recently targeted for potential tariff increases include Japan, South Korea, South Africa, Indonesia, Thailand, Cambodia, and several North African and Middle Eastern countries.
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