Trump says EU and Mexico face 30% tariffs starting in August

President Donald Trump announced that the EU and Mexico will face 30% tariffs on U.S. imports starting August 1.

He warned that if either of the United States decides to retaliate, he will impose a higher import tax.

The 27-member EU said earlier this week that it hopes to reach a deal with Washington by August 1.

Trump also said this week that the United States will impose new tariffs on goods in Japan, South Korea, Canada and Brazil starting August 1. Similar letters were sent to many smaller U.S. trading partners this week.

“We have been discussing trade relations with the EU for many years and concluded that we must stay away from these long-term general, persevering trade deficits, your tariffs and non-satellite, policy, policy and transactional barriers,” Trump wrote in a letter to European Commission President Ursula von der Leyen on Friday.

“Unfortunately, our relationship is far from the countdown,” the letter added.

In a letter to the EU and Mexico, Trump warned that if any trading partner retaliates against U.S. import tariffs with his own import tariffs, he would increase the tariffs by more than 30%.

The EU has been a regular target of Trump’s criticism. On April 2, he proposed a 20% tariff on the goods of the masses and dozens of other trading partners. Then, as trade stagnated, he threatened to raise the EU import tax to 50%.

Washington and Brussels had hoped to reach an agreement by the July 9 deadline, but there was no announcement on progress.

According to the Office of the U.S. Trade Representative, the U.S. group’s trade deficit in 2024 was US$235.6 billion (EUR 2.02 billion; £174 million).

Von der Leyen said the EU is still ready to “continue to work hard to reach an agreement by August 1”.

“There are few economies in the world that match the EU’s level of openness and compliance with fair trade practices,” her statement added.

“We will take all the necessary steps to protect the interests of the EU, including adopting proportional countermeasures when needed.”

French President Emmanuel Macron said he was “very opposed” to the news announced by Trump.

If no agreement is reached, French leaders recommend that the EU plan “accelerate reliable countermeasures.”

Italian Prime Minister Giorgia Meloni said in a statement she believes a “fair deal” could be reached, adding: “It doesn’t make sense to spark a trade war between the Atlantic.”

Dutch Prime Minister Dick Schoof said on social media that the EU must “stay united and stick to it” to reach a “mutually beneficial” deal with the United States.

The German Automobile Industry Association warned of the prospect of rising costs for German automakers and suppliers, saying “a pity that there is a threat of further escalation of trade conflicts”.

Trump said in a letter to the Mexican leader that the country has not done enough to prevent North America from becoming a “playground for trafficking in Nalco.”

“Mexico has been helping me protect the border, but what Mexico has done is not enough,” Trump added.

Mexican President Claudia Sheinbaum expressed his belief that an agreement could be reached.

“We think we will reach an agreement with the United States based on what colleagues discussed yesterday, and of course, we will meet better conditions,” Sheinbaum said on Saturday.

“We’re very clear that we can work with the United States and we know what we can’t do,” she added. “And there are things that will never be negotiated, and that’s the sovereignty of our country.”

Earlier on Saturday, Mexico’s economic and foreign government departments called Trump’s tariffs a “unfair deal.”

Trump’s letter did not state whether Mexican goods traded in the US-Mexico-Canada agreement will be exempt from the proposed August 1 tariff hike, as the White House said.

Earlier this week, the White House wrote to Canada that it threatened to impose a 35% tariff.

As of Saturday, the Trump administration has now proposed tariff conditions for 24 countries and the EU.

On April 12, White House trade adviser Peter Navarro set a goal to get “90 deals” in 90 days.

So far, the President has announced an overview of two such agreements with the UK and Vietnam in ongoing negotiations.