U.S. President Donald Trump has added the European Union and Mexico to the list of trading partners the U.S. is threatening with 30 percent tariffs as of 1 August.
Trump sent letters to both Mexico President Claudia Sheinbaum and European Commission President Ursula von der Leyen threatening tariffs as of 1 August – with differing reasons for implementation.
For the E.U., Trump said the bloc’s tariff, non-tariff policies, and trade barriers are obstacles to U.S. trade and must be removed to allow complete, open market access to the U.S.
“Please understand that the 30 percent number is far less than what is needed to eliminate the Trade Deficit disparity we have with the E.U.,” Trump wrote.
The 30 percent number is the third such threat in four months. Trump initially threatened the E.U. with a 20 percent “reciprocal” tariff in April and then later threatened the bloc with a 50 percent tariff in late May. In May, he similarly said that the trade deficit and trade barriers were the reason for the higher tariff, which he recommended at the time should start on 1 June.
While Trump threatened the E.U. with a 30 percent tariff over trade barriers and the trade deficit, he threatened Mexico with the same rate.
Trump briefly implemented 25 percent tariffs with Mexico earlier this year before a one-month pause that was then allowed to lapse. Then, he implemented the tariffs a second time before yet another month-long pause. Later, the tariffs went into effect, but goods covered under the United States-Mexico-Canada Agreement (USMCA) were exempted, which comprises 87 percent of goods traded with the U.S. – including seafood.
The tariffs on Mexico were also complicated by the Court of International Trade (CIT) declaring the tariffs on Mexican goods related to fentanyl invalid and contrary to law, permanently enjoining the executive order implementing the 25 percent tariff.
Trump’s letter does not mention the CIT ruling and reiterates the reason for the newest threats as being related to fentanyl and Mexico’s drug cartels.
“Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground. Obviously, I cannot let that happen!” Trump wrote.
For both sets of tariffs, no official documentation has been made available by the White House aside from the two letters that Trump posted to Truth Social – the social media site he owns.
Both Sheinbaum and von der Leyen said they were disappointed by the tariffs but that they were committed to continued negotiations.
"We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now until 1 August," von der Leyen said during a press conference. “We’ve prepared for this, and we can respond with countermeasures if necessary.”
