WASHINGTON: President Donald Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the key US allies and top trading partners failed to reach a trade deal.
In an escalation of the trade war that has angered US allies and rattled investors, Mr Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexico’s President Claudia Sheinbaum posted on Truth Social.
Both the EU and Mexico responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the US for a broader trade deal before the August deadline.
The European Union and Mexico are among the largest US trading partners.
European leaders warn of global supply chain disruption, pledge to continue talks with US
Trump said the 30pc tariff rate was separate from all sectoral tariffs, which means 50pc levies on steel and aluminium imports and a 25pc tariff on auto imports would remain at those levels.
The August 1 deadline gives countries targeted by Trump’s letters time to negotiate a trade deal that could lower the threatened tariff levels.
The spate of letters shows Trump has returned to the aggressive trade posture that he took in early April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation.
Trump promised to use the 90-day pause in April to strike dozens of new trade deals with trading partners, but has only secured framework agreements with Britain, China and Vietnam. The EU had hoped to reach a comprehensive trade agreement with the US.
Trump’s letter to the EU included a demand that Europe drop its own tariffs, an apparent condition of any future deal.
“The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit,” Mr Trump wrote.
EU President von der Leyen said the 30pc tariffs would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.
She also said while the EU will continue to work towards a trade agreement, they will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.
Reactions to Trump threats
Mexico slammed latest threat of 30pc tariffs as an “unfair deal,” according to a government statement.
“We mentioned at the table that it was an unfair deal and that we did not agree,” the Mexican economy and foreign ministries said in a joint statement, adding that they hoped to avoid the duties.
A statement from Italian Prime Minister Giorgia Meloni’s office struck a conciliatory tone, expressing trust “in the goodwill of all players” to find a solution, given that “it would make no sense to trigger a trade clash.”
Dutch Prime Minister Dick Schoof called the US announcement “concerning and not the way forward,” offering his “full support” for the European Commission’s efforts.
Calling for de-escalation, Irish Foreign Affairs and Trade Minister Simon Harris said, “There is no necessity to escalate the situation… The EU will remain united and focused as negotiations continue.”
The economic stakes were underscored by Germany’s powerful Federation of German Industries, which described Trump’s threat as a “wake-up-call.”
“A trade conflict between two economic areas as closely linked as the EU and the United States harms economic recovery, innovation strength, and ultimately confidence in international cooperation,” said Wolfgang Niedermark, a senior BDI official.
Published in Dawn, July 13th, 2025