Topline
President Donald Trump announced Saturday his administration is imposing 30% tariffs on imports from the European Union and Mexico, hiking up the tariff rate for two of the U.S.’s biggest trading partners despite lengthy negotiations.
President Donald Trump listens as African leaders deliver remarks at the White House on July 9.
Key Facts
Trump posted two letters Saturday morning to his Truth Social account, which were addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, informing them the Trump administration is imposing a 30% tariff rate on their imports.
The tariffs are slated to kick in on Aug. 1, and do not include any separate tariffs on specific sectors, like steel or automobiles.
The 30% rate on the EU is unexpected, as reports suggest the bloc had been in the process of negotiating a deal with the Trump administration in which they would have kept the existing 10% tariff rate in place, and European officials believed they would not receive a letter imposing a new tariff rate on them, as other countries had.
Trump’s letter to Mexico cited the country’s failure to deal with the flow of fentanyl from its drug cartels into the U.S., with Trump writing, “Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough.”
It’s unclear if the 30% rate could change before Aug. 1: Trump’s letter threatens his administration will raise the tariff rate further if either the EU or Mexico decides to retaliate, and both countries are likely to pursue further negotiations with the Trump administration before the Aug. 1 deadline.
Trump suggests he could also lower the 30% tariff rate if they get rid of their trade barriers for U.S. imports—or, in Mexico’s case, completely stop the flow of fentanyl into the U.S.
How Have The Countries Responded?
Mexico has not yet responded to Trump’s new tariff rates, but von der Leyen hit back at the tariffs in a statement Saturday, saying the 30% tariff rate would “disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.” The European official did not announce any specific retaliatory measures the bloc could take in response, but said that while the EU will “continue working toward an agreement by August 1,” the bloc “will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
What Goods Will These Tariffs Affect?
The EU exported $605.8 billion worth of goods to the U.S. in 2024, and European nations collectively have been the U.S.’ biggest trading partner. The bloc’s biggest exports to the U.S. that are likely to be impacted by the tariffs are machinery, electrical equipment, electronics, various optical, photo and medical equipment, aircraft, plastics, beverages and cosmetics. The EU’s single biggest export to the U.S. in 2024 was pharmaceuticals, but Trump’s “Liberation Day” tariffs exempts those—though the president has floated imposing a 200% tariff on the sector, which would be separate from the 30% rate imposed Saturday. Mexico is also one of the U.S.’s biggest trading partners, exporting $505.9 billion worth of goods to the U.S. in 2024. The country’s biggest exports to the U.S. include automobiles and automobile parts, electronics, machinery, agricultural products, petroleum and medical instruments. Trump has separate tariffs for automobiles, however, and it’s unclear which goods will ultimately be affected by the 30% tariff rate, as Trump’s current tariffs on Mexico exempt products covered under the United States-Mexico-Canada Agreement, such as avocados, other produce, rubber and plastics. Trump officials have suggested Trump’s new 35% tariff rate on Canada will exempt goods covered by the agreement, but the administration has not yet specified how the tariff on Mexican goods will apply.
Key Background
Trump’s letters to the EU and Mexico are part of a new wave of notices the Trump administration has been sending out to its trading partners in recent days, also imposing new tariff rates on such major countries as Japan, South Korea, Canada and Brazil. Trump initially paused his “Liberation Day” tariffs—which imposed sweeping tariffs on nearly all countries—for 90 days after they briefly took effect in April and caused the stock market to plunge. While Trump officials promised they would use the pause to reach trade deals, vowing to reach “90 deals in 90 days,” the administration has so far only announced formal trade deals with the U.K., Vietnam and China. As a result, Trump instead decided to just send letters to trading partners that unilaterally set new tariff rates, sending out his first letters Monday after suggesting for weeks he intended to imminently start imposing new rates. The administration also formally extended the tariff pause from July 9 to Aug. 1 as it sends out letters, and the president has offered conflicting statements on whether that deadline could be extended again.
Further Reading
Source: https://www.forbes.com/sites/alisondurkee/2025/07/12/trump-imposes-30-tariffs-on-eu-and-mexico/