Trump announces 30% tariffs on Mexico and the European Union

President Donald Trump has threatened to impose 30% tariffs on products from Mexico and the European Union, two major trading partners of the United States. This ongoing tariff campaign has disrupted global trade since Trump's return to office in January.

In a letter to Ursula von der Leyen, president of the European Commission, Trump stated that despite the trade deficit with the EU, the US has decided to move forward with more balanced and fair trade. Trump has implemented a series of tariffs on US trading partners this year, leading to economic uncertainty.

The EU and Mexico are among the countries facing updated duties starting August 1. Trump's letters to these countries outlined a 30% tariff on all imports, excluding certain sectors like the auto industry.

Von der Leyen expressed willingness to work towards an agreement by the deadline but warned that a 30% tariff would have negative impacts on supply chains and consumers on both sides of the Atlantic. Mexico's compliance with the USMCA has allowed duty-free entry for its products, but Trump cited the need to stop the flow of fentanyl as a reason for imposing tariffs.

Trump's administration has raised concerns about trade barriers and taxes, particularly digital service taxes in the EU. The threat of tariffs on the EU and Mexico follows previous tariff threats on Canadian goods.

According to the source: CNN.