Trump warns Mexico, EU to hit 30% tariff starting Aug 1
Trump Expands Tariffs on Mexico and the European Union
Donald Trump has announced a 30‑percent tariff on Mexican goods and an even steeper 35‑percent duty on products from the European Union, effective August 1. The administration’s moves come as the former president seeks new trade deals after a string of agreements with Britain, Vietnam and a pause in China tariffs.
Key Tariff Details
- Mexico – 30 % duty on all Mexican products, except those entered under the US‑Mexico‑Canada Agreement (USMCA).
- Canada – 35 % tariff on Canadian goods, with the USMCA exemption expected to remain.
- European Union – 35 % duty on EU merchandise, a rise from the 20 % tariff announced in April.
Strategic Context
Trump’s letters cited Mexico’s role in drug trafficking and the EU’s trade imbalance as justification. The administration’s approach has roiled markets and raised concerns of a global downturn, while the US pushes for agreements to offset rising tariffs.
Responses from Partner Nations
- Brussels – “We are ready to negotiate a deal that preserves our 20 % tariff level.”
- European Officials – Retaliatory duties worth 21 billion euros have been prepared, but a suspension remains until July 14.
Future Trade Outlook
Since the week’s start, Trump has dispatched updated tariff letters to over 20 countries. The administration’s next challenge is securing deals that mitigate the impact of higher duties while maintaining the US’s strategic trade position.
