President Donald Trump has announced that the European Union and Mexico will face 30% tariffs on imports into the US from August 1st.
He warned that if any of the US trading partners decide to retaliate, they would impose an even higher import tax.
The 27-member EU (USA’s largest trading partner) wanted to agree to a deal with Washington by August 1st earlier this week.
Trump said this week that the US will impose new tariffs on goods from Japan, South Korea, Canada and Brazil. A similar letter was sent this week to many small US trading partners.
In a letter sent to European Commission President Ursula von der Leyen on Friday, Trump wrote: “We have been years to discuss our business relationship with the European Union, and we have concluded that we must move away from your tariffs and these long-term and permanent trade deficits imposed by your tariffs, as well as by non-tariffs, policies, and trade by.”
“Unfortunately, our relationship was far from each other,” the letter added.
The EU was a frequent target for Trump’s criticism. On April 2nd, he proposed a 20% tariff on goods from the block. He then threatened to raise the EU import tax to 50% as trade talks stagnated.
Washington and Brussels hoped to reach an agreement before the July 9 deadline, but there were no announcements regarding the progress.
In 2024, the US trade deficit was $235.6 billion (220 billion euros, £17.4 billion), according to the US Trade Representative.
Von Der Leyen said the EU is “prepared to continue working together to reach an agreement by August 1st.”
“The global economy is rarely consistent with the level of openness in the European Union and compliance with fair trading practices,” her statement added.
“We will take all necessary measures to protect the EU’s interests, including the adoption of proportional measures, as needed.”
French President Emmanuel Macron said he was “very strong disapproval” of Trump’s announcement.
If an agreement is not reached, the French leader proposed that the EU plan “accelerate preparation for reliable measures.”
Italian Prime Minister Giorgia Meloni added in a statement that he believes a “fair agreement” could be reached, “it’s pointless to cause a trade war on both sides of the Atlantic.”
Dutch Prime Minister Dick Schuf said on social media that the EU must “be united and remain determined” with the aim of reaching “mutually beneficial” deals with the United States.
The German Automotive Industry Association warned of the prospect of rising costs for German automakers and suppliers, saying it was “disappointing that there is a threat of further escalation in trade disputes.”
In a letter to Mexican leaders, Trump said the country hasn’t done enough to stop North America from becoming a “drug trafficking playground.”
“Mexico has helped me secure the border, but what Mexico has done isn’t enough,” Trump added.
In a letter to the EU and Mexico, Trump warned that if any of the trading partners retaliate on import duties on the US, he would fight back by raising tariffs at a rate of more than 30%.
Mexico responded to Trump’s threat on Saturday, calling it “unfair deal.”
Trump’s letter did not say whether Mexican goods traded in the 2020 US-Mexico-Canada agreement would be exempt from the August 1 tariff hike proposal, as he said was a Canadian case.
Earlier this week, the White House sent a letter to Canada, threatening a 35% tariff.
As of Saturday, the Trump administration is currently proposing tariff conditions in 24 countries and the EU.
On April 12, White House trade advisor Peter Navarro set the goal of securing “90 transactions in 90 days.”
So far, the President has issued an outline of two such agreements with the UK and Vietnam amid ongoing negotiations.
