U.S. President Donald Trump has announced plans to impose 30% tariffs on all imports from the European Union and Mexico, marking a significant escalation in ongoing trade disputes with two of the United States’ largest trading partners. The measure is set to take effect on 1 August, unless agreements are reached in the interim.
The announcement was made via separate letters addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, both of which were published on Trump’s Truth Social platform. The move follows weeks of inconclusive negotiations and comes amid broader efforts by the Trump administration to renegotiate multiple trade arrangements on terms favourable to Washington.
In addition to the EU and Mexico, similar letters were sent to 23 other trade partners, including Canada, Brazil, and Japan, outlining tariff rates ranging from 20% to 50%. A separate 50% levy on copper, as well as sector-specific tariffs—such as 50% on steel and aluminium and 25% on cars—will remain in place.
European and Mexican Reactions
The EU swiftly condemned the proposed tariffs as disruptive to transatlantic commerce. President von der Leyen stated the tariffs would “disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.” She reiterated the EU’s readiness to continue trade negotiations but warned that “all necessary steps” would be taken to defend European interests, including proportionate countermeasures if needed.
The European Parliament’s trade committee chair, Bernd Lange, called for immediate retaliatory action. “This is a slap in the face for the negotiations. This is no way to deal with a key trading partner,” Lange said.
Mexico, which exports over 80% of its goods to the United States and was Washington’s largest trading partner in 2023, also denounced the proposed tariffs. President Claudia Sheinbaum expressed hope that a deal could be reached but affirmed that Mexico’s sovereignty was non-negotiable. “What you have to do is keep a cool head to face any problem,” she said during a visit to Sonora.
Mexico’s economy ministry said it had been informed of the U.S. intentions during a meeting on Friday and had reiterated its opposition to what it described as unfair treatment.
Justification and Political Context
President Trump framed the tariffs as necessary to address what he called “unfair treatment” by foreign trading partners and to reduce the U.S. trade deficit. In his letter to the EU, he demanded “complete, open Market Access” to the European market, free of tariffs. The EU had registered a trade surplus of €197 billion with the U.S. in 2024.
In the case of Mexico, Trump cited the ongoing fentanyl crisis as partial justification. He acknowledged Mexican cooperation on border security but said it was insufficient to prevent drug cartels from operating across North America. While fentanyl production largely relies on precursor chemicals imported from China, U.S. officials have linked the bulk of trafficking routes to the southern border.
Interestingly, the tariff rate proposed for Mexico—30%—is lower than the 35% level threatened against Canada, despite significantly higher drug seizure volumes at the Mexican border. Canadian officials have yet to respond publicly.
Diplomatic and Economic Fallout
The broader implications of Trump’s renewed tariff push are becoming clearer. U.S. customs duties generated over $100 billion in revenue in the fiscal year up to June, according to Treasury data, but the gains have come at the cost of strained relations with long-standing allies.
Japanese Prime Minister Shigeru Ishiba remarked last week that Tokyo must reduce its reliance on Washington, hinting at a reorientation in trade and defence procurement policies. Several European capitals are also reportedly re-examining defence supply chains, including potential acquisitions of non-U.S. weapons systems.
The EU had previously pursued a comprehensive trade agreement with Washington but has more recently narrowed its ambition to a broader framework arrangement. Germany, heavily reliant on exports, has advocated a swift deal to shield industry from disruption. France and several other member states, however, remain wary of yielding to what they see as U.S. pressure.
Trade War Outlook
Trump’s threat of new tariffs reprises a pattern seen earlier in 2025, when a similar wave of duties was announced in April, only to be delayed following negative market reactions. While some observers suggest that the 1 August deadline may be a tactical move aimed at extracting concessions, European officials are preparing for the possibility of long-term friction.
The current strategy appears aimed at compelling concessions through maximal pressure, with the U.S. economy still demonstrating resilience and equity markets posting record highs. Nevertheless, the longer-term consequences for global trade stability, supply chains, and diplomatic relations remain uncertain.
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