Trump’s Tariff Push: 30% Duties Loom Over EU and Mexico Imports

Former U.S. President Donald Trump has reignited global trade tensions by proposing 30% tariffs on imports from the European Union and Mexico, key economic allies of the United States. The move, set to take effect on August 1, is part of a broader campaign to reduce trade deficits and reshape international trade relations.

In open letters addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, Trump declared the tariffs would apply broadly across sectors, except for certain categories like vehicles, which would face a separate 25% duty.

Trump emphasized that while the U.S. remains open to diplomatic engagement, any future trade arrangement must reflect a fairer balance. “We continue to engage with the EU, but with the understanding that trade must now be equitable,” he wrote on his social platform.

Strong Reactions from EU and Mexico

The European Union was quick to respond. Ursula von der Leyen warned the proposed tariffs would significantly disrupt transatlantic commerce, hurt industries, and burden consumers. She also stressed that the EU is prepared to implement countermeasures if the tariffs are enforced.

French President Emmanuel Macron joined the chorus of criticism, calling for expedited readiness on the part of the European Commission. “Europe must be prepared to protect its trade and economic sovereignty,” he noted in a post.

On the other side of the Atlantic, Mexican leaders are actively working to prevent the tariffs. President Sheinbaum stated that discussions with U.S. officials were underway to avoid the duty hike. “The goal is clearly to reach common ground that supports both our economies,” she said during a speech in Guaymas.

Mexico’s Economy Minister Marcelo Ebrard added that the proposed tariffs would be seen as disproportionate and in conflict with the principles of the USMCA, a trade deal negotiated during Trump’s previous term.

The former president pointed to ongoing issues at the southern border, particularly the flow of illegal substances, as part of his reasoning for targeting Mexico with new tariffs.

Policy Shakeup Raises Economic Uncertainty

According to the Office of the U.S. Trade Representative, the EU is America’s largest trading partner, with nearly $976 billion exchanged in 2024, followed by Mexico at around $840 billion. Canada, also recently threatened with new duties, comes in third.

Trump made it clear that any retaliatory duties would trigger even higher tariffs from the U.S., stating that any increase from other countries would be matched and added to the baseline 30%.

A major sticking point in talks has been the EU’s digital services tax, which targets online companies’ gross revenue—regardless of whether they turn a profit. U.S. officials see this as an unfair burden on American firms.

Treasury Secretary Scott Bessent defended the proposed tariffs, stating that the EU’s recent trade proposals “lacked the depth and cooperation we’ve received from others.” He also praised the UK for finalizing a deal early to avoid disruption.

As the August deadline nears, world markets and businesses are watching closely to see whether negotiations can prevent another full-scale trade conflict or if a new wave of tariffs is inevitable.