Mexico, EU to face 30% tariff from Aug 1 – Trump

Trump

President Donald Trump on Saturday targeted Mexico and the European Union with steep 30 percent tariffs, dramatically raising the stakes in already tense negotiations with two of the largest US trading partners.

Both sets of duties would take effect August 1, Trump said in formal letters posted to his Truth Social platform. The president cited Mexico’s role in illicit drugs flowing into the United States and a trade imbalance with the EU as meriting the tariff threat.The EU swiftly slammed the announcement, warning that it would disrupt supply chains, but insisted it would continue talks on a deal ahead of the deadline.

Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.

But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements.

So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China.

The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed on Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted.

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump said in his letter to Mexican President Claudia Sheinbaum. “Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States.”

The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April, as negotiations with the bloc continue.

“Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” European Commission chief Ursula von der Leyen said in a statement, in reply to Trump’s letter to her. Vanguard