Trump Targets EU and Mexico with 30% Tariff Threat
In a move poised to escalate trade tensions, former U.S. President Donald Trump has proposed a 30% tariff on imports from the European Union and Mexico, citing long-standing trade imbalances and national security concerns. The announcement is the latest in a series of aggressive tariff policies initiated since his return to office in January.
In public letters addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, Trump stated that the United States would proceed with the tariffs beginning August 1, unless “fairer” trade terms are agreed upon. These duties would apply to most imports, excluding certain sector-specific products such as automobiles, which will be taxed at 25%.
Trump emphasized that although he remains open to negotiation, the U.S. will no longer tolerate trade relationships that result in substantial deficits. “We continue to work with the European Union, but it must be on more balanced and reciprocal terms,” he wrote on his social media platform.
EU and Mexico Push Back, Warn of Countermeasures
European leaders quickly voiced strong opposition. Ursula von der Leyen warned that the 30% duties would disrupt supply chains, hurt consumers, and provoke retaliatory measures. “The European Union stands ready to defend its interests and will prepare proportional counteractions if needed,” she stated.
French President Emmanuel Macron echoed those sentiments, urging the European Commission to accelerate preparations for a response. “Europe must act swiftly and decisively to protect its economic interests,” he posted on social media.
Mexico also expressed concern. President Sheinbaum noted that her administration is actively negotiating with U.S. officials to avoid the tariffs. “The letter clearly shows a desire to reach an agreement. We’re confident we can find terms that protect businesses and jobs on both sides,” she said in a public address.
Mexico’s economy minister Marcelo Ebrard added that his team informed Washington the proposed measures would amount to unfair treatment, especially considering the existing United States-Mexico-Canada Agreement (USMCA) that ensures tariff-free trade under specific compliance conditions.
Trump has repeatedly cited the need to curb the flow of fentanyl across the southern border as a justification for previous tariffs and reiterated that stance again in the latest announcement.
Tariff Policy Raises Concerns Over Economic Stability
The United States Trade Representative (USTR) reports that the EU remains America’s top trade partner, with nearly $976 billion in two-way trade in 2024. Mexico follows closely, with approximately $840 billion in exchanged goods. Canada, recently threatened with a 35% tariff on select products, ranks third.
Trump’s letters warned that any retaliatory action would be met with further tariff hikes, stating, “Whatever increase you choose to make, we will match by adding it to the existing 30%.”
Tensions have been further fueled by U.S. frustration with digital service taxes in Europe, which impose levies on the revenue of global tech companies—regardless of profitability. These taxes have long been a sore point for Washington, which sees them as discriminatory.
Despite criticism from international leaders, Trump’s administration remains firm. Treasury Secretary Scott Bessent defended the move, saying that proposals from the EU “have not matched the seriousness or cooperation shown by our other trading partners.” He also praised the United Kingdom for striking a deal ahead of the deadline.
With less than a month before implementation, all eyes remain on whether negotiations can ease growing trade hostilities—or if August will bring a new wave of tariff wars.
