President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the key U.S. allies and top trading partners failed to reach a comprehensive trade deal,
Reuters reports.
In an escalation of the trade war that has angered U.S. allies and rattled investors, 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 on Saturday.
Both the EU and Mexico responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the U.S. for a broader trade deal before the August deadline.
The European Union, opens new tab and Mexico are among the largest U.S. trading partners.
Trump has sent similar letters to 23 other U.S. trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper.
Trump said the 30% tariff rate was “separate from all sectoral tariffs”, which means 50% levies on steel and aluminum imports and a 25% 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.
But with the stock market hitting record highs in recent weeks and a bullish economy, Trump is showing no signs of slowing down his trade war.
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 U.S. for the 27-country bloc.
