US President Donald Trump on Saturday issued fresh tariff ultimatums, announcing a 30% tariffs on imports from Mexico and the European Union. The move, revealed through two letters shared on social media, adds pressure on US allies to renegotiate trade terms before the new rates take effect on August 1.
Donald Trump has spent the week sending out letters to countries, tweaking his proposed tariff levels from April and inviting trading partners to negotiate further.
The EU had been hoping to conclude a tentative deal with the EU to stave off the tariff, but Trump’s letter dulled optimism for an 11th-hour agreement between the major economies.
“The European Union will allow complete, open Market Access to the United States,” Trump said, or “whatever the number you choose to raise them by, will be added on too the 30% that we charge.”
In his letter to Mexico, Trump said the country has been “helping me secure the border,” but added that it wasn’t enough.
“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 said in the letter to Mexican President Claudia Sheinbaum.
Earlier this week, President Trump expanded his tariff push, targeting countries like Japan, South Korea, Canada, and Brazil, and imposing a 50% tariff on copper. The European Union, anticipating Trump's next move, had been preparing for the formal notice of new U.S. duties, especially given the recent escalation in his trade agenda.
The EU had initially aimed for a wide-ranging trade pact with the U.S. that would eliminate tariffs on industrial goods. However, prolonged and challenging negotiations have led to tempered expectations, with hopes now pinned on securing an interim deal that could pave the way for broader terms later.
The 27-nation bloc remains divided—Germany, focused on protecting its industrial base, is pressing for a quick resolution, while others like France are wary of yielding too much ground to Washington and insist on a more balanced outcome.
*With Agency Inputs
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