Trump says EU and Mexico face 30% tariff from August

President Donald Trump announced that a 30% tariff will be imposed on imports to the US from the European Union and Mexico starting August 1st. He warned that even higher import taxes would be applied if either trading partner retaliated.

Trump also stated this week that the US will impose new tariffs on goods from Japan, South Korea, Canada, and Brazil, also effective August 1st. Similar notifications were sent to several smaller US trade partners.

In a letter to European Commission President Ursula von der Leyen, Trump criticized the long-standing trade deficits with the EU, attributing them to EU tariff and non-tariff barriers and trade policies. He described the trade relationship as "far from reciprocal," citing a 2024 US trade deficit with the EU of $235.6 billion.

This follows previous threats; Trump proposed a 20% tariff on EU goods in April and later threatened to raise it to 50% as trade talks stalled. Although Washington and Brussels aimed for an agreement by July 9th, no progress was announced.

Von der Leyen responded that the EU remains ready to work towards an August 1st agreement, emphasizing the bloc's openness and adherence to fair trading practices. She stated the EU would take "all necessary steps" to safeguard its interests, including "proportionate countermeasures."

EU leaders expressed strong disapproval. French President Emmanuel Macron condemned the announcement and suggested speeding up preparations for countermeasures. Italian Prime Minister Giorgia Meloni expressed confidence in reaching a "fair agreement," warning against triggering an Atlantic trade war. Dutch Prime Minister Dick Schoof stressed the need for EU unity in pursuing a "mutually beneficial" deal.