Trump Announces 30% Tariff on Imports from Mexico and EU

WASHINGTON, D.C. — President Donald Trump announced on Saturday that a 30% tariff will be imposed on goods imported from Mexico and the European Union (EU) starting August 1. The announcement came via his social media platform, Truth Social, even as the EU was seeking a de-escalation in trade tensions.

In a letter to Mexico’s President Claudia Sheinbaum, Trump expressed gratitude for Mexico’s role in combating the flow of undocumented migrants and fentanyl. However, he criticized Mexico for insufficient efforts to prevent North America from becoming a ‘Narco-Trafficking Playground.’

Trump also addressed the EU in a separate letter, stating, ‘We have concluded we must move away from these long-term, large, and persistent Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers.’ The new tariff rate is significantly higher than the 10% that was reportedly being negotiated by the European trade commissioner, Maroš Šefčovič.

This unexpected tariff announcement has raised concerns in Brussels, as the EU had hoped to finalize a trade agreement that would have alleviated potential disputes. Many fear the new tariffs could ignite a trade war, affecting low-margin goods such as Belgian chocolate, Irish butter, and Italian olive oil.

European Commission President Ursula von der Leyen reacted with concern, stating that the imposition of a 30% tariff would disrupt vital transatlantic supply chains, harming businesses and consumers on both sides of the Atlantic. ‘We are ready to continue working towards an agreement by August 1,’ she added, emphasizing the EU’s intent to protect its interests.

Experts suggest that the recent letters from Trump indicate a lack of substantial trade dialogues over the past months. Douglas Holtz-Eakin, a former Congressional Budget Office director, pointed out that nations are preparing for trade implications instead of negotiating with the U.S. ‘They’re spending time talking to each other about what the future is going to look like, and we’re left out,’ he said.

Additionally, the president warned that if the EU or Mexico retaliates with their own tariffs, those amounts would be added to the U.S. tariff rates. This latest development concludes a tumultuous week for the EU, as it marks a step back from previous negotiations that had shown promise.

The EU collectively sells over $553 billion worth of goods to the U.S., making it a significant trading partner. Trump had previously sent similar letters to other trading partners, including Japan and Brazil, establishing tariff rates as high as 50%.

As tensions rise, both sides brace for further negotiations ahead of the August deadline.