The US President, Donald Trump, on Saturday announced imposing 30% tariffs on the European Union (EU) and Mexico, to take effect on August 1.
The announcement, made on Trump’s social media, comes as the US President has started sending letters to world leaders notifying them of levies after a three-month grace period ended on July 9, 2025, following the tariff war he sparked in April.
Mexico Tariffs
Trump posted letters on his Truth Social, detailing the tariffs he plans to impose on both Mexico and the EU, according to the Associated Press (AP). In his letter to Mexico, he acknowledged the country’s efforts in curbing the flow of undocumented migrants and fentanyl into the US.
However, Trump said that Mexico had not done enough to stop North America from turning into a “Narco-Trafficking Playground.” Trump wrote: “Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough.”
EU Tariffs
Meanwhile, in his letter to the EU, the US President said that trade deficit with the bloc is a national security threat.
“We have had years to discuss our Trading Relationship with The European Union, and 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,” Trump wrote in the letter, adding that “Our relationship has been, unfortunately, far from Reciprocal.”
Moreover, Trump warned the bloc of any retaliatory measures. “If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge,” he added.
Mexico’s Response
The Mexican government said in a statement that US State Department officials notified them of the letter during high-level talks on Friday. In response, the Mexican officials told their American counterparts that they disagreed with the decision and considered it “unfair treatment.”
Meanwhile, Mexico’s President, Claudia Sheinbaum, said on Saturday that she is sure Mexico and the US will reach a better agreement. “I’ve always said that in these cases, you need a cool head to face any problem,” Sheinbaum said during a public appearance. She also added that Mexico’s sovereignty is never negotiable.
EU Backlash
The tariffs came as a shock to Europe as the EU Commission was engaged in negotiations with the US Trade Representative, Jamieson Greer, to forge a deal acceptable to both sides, according to The Guardian.
In response to Trump’s announcement, EU Commission President, Ursula von der Leyen, said that the bloc will “take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” while underscoring the EU’s commitment to dialogue and transatlantic partnership. She said that the EU will continue negotiations to reach an agreement before August 1.
Similarly, European leaders warned of the consequences of Trump’s tariffs which could trigger reciprocal measures.
France’s President, Emmanuel Macron, urged for European unity, saying that the Commission has to “assert the Union’s determination to resolutely defend European interests.”
Meanwhile, the office of Italian Prime Minister, Giorgia Meloni, warned of the repercussions of a trade war between both sides. “It would make no sense to trigger a trade war between the two sides of the Atlantic,” it said. The Swedish Prime Minister, Ulf Kristersson, also warned that “everyone loses out from an escalated trade conflict, and it will be US consumers who pay the highest price.”
The EU trade ministers will meet on Monday for a pre-scheduled summit to discuss trade relations with the US and China.
Countries under Trump’s Tariffs
On April 2, Trump sparked a trade war by announcing stiff tariffs on all imports to the US. Trump’s move sparked fear across the world of an economic recession and higher inflation. As a result, Trump later suspended most of the tariffs for 90 days, set to expire on July 9.
The US President said that his administration would notify countries of trade penalties starting on July 7, warning them that they would face higher tariffs on August 1, 2025. So far, Trump has notified the EU and 24 other countries of higher tariffs, warning them of more levies if they retaliated, according to AP.
Brazil has been slammed with the highest tariffs so far, with 50% rate, while Myanmar and Laos each face 40% rate. Trump also announced a 36% tariff on Cambodia and Thailand. Meanwhile, Bangladesh, Canada, and Serbia each face a 35% tariff, whereas Indonesia faces 32% rate.
Furthermore, Trump imposed a 30% tariff on Algeria, Bosnia and Herzegovina, the EU, Iraq, Libya, Mexico, South Africa, and Sri Lanka. Other countries, including Brunei, Moldova, Japan, Kazakhstan, Malaysia, South Korea, and Tunisia are under 25% tariffs, while the Philippines faces a 20% tariff.
