Trump announces tariffs of 30% on Mexico and the E.U.
President Donald Trump threatened to raise tariffs by a lot on the European Union and Mexico, two of the biggest trade partners of the U.S., on Saturday.
Trump said in separate posts on his social media site, Truth Social, that starting on August 1, all goods sent to the U.S. from each nation will be subject to a 30% duty.
“The United States of America has agreed to continue working with the European Union, despite having one of our largest Trade Deficits with you. Nevertheless, we have decided to move forward, but only with more balanced and fair TRADE,” Trump wrote in the letter to Ursula von der Leyen, president of the European Commission, which he posted to Truth Social.
Writing to Mexico's president, Trump also focused on border security, saying that "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough."
"Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," he added.
This year, Trump put a bunch of tariffs on US trading partners. Then he stopped, changed, raised, or lowered them in a chaotic series of policy actions that have left everyone from big countries to regular Americans trying to figure out how to plan for the future even though the economy is getting more uncertain.
The EU and Mexico join a growing list of countries whose imports will face updated duties on August 1, since Trump began posting tariff letters on Monday with rates of up to 40%.
Trump wrote to the EU and Mexico that all imports were subject to the 30% duty, except for "Sectoral Tariffs," like the 25% car tariff.
Trump said in the tariff letters, which were sent on Friday, that the US will fight back against any taxes placed on US products. Trump said that “whatever the number you choose to raise (tariffs) by, will be added onto the 30% that we charge.”
Trump kicked it off by issuing dozens of letters announcing unilateral tariffs, then said he planned to impose 50% duties on copper goods, sending prices of the raw metal to all-time highs. He said late Thursday that he will put a 20% tax on all imports and a 35% tax on certain, and maybe all, Canadian goods starting next month.
The letters come after several trade accords that Trump administration officials predicted would be inked have not happened, leaving Trump with little to show for weeks of talks.
While Mexico was spared from Trump's so-called "Liberation Day" tariff rollout on April 2, the 30% rate for the E.U. is 10% higher than what the president said he would apply to America's largest trading partner in April but lower than his mid-May threat of 50%.
The 27-member European Union is the biggest commercial partner of the United States. Its $605 billion worth of imports into the U.S. is more than Mexico, Canada, and even China. The most valuable category was drugs and pharmaceuticals, followed by autos and aircraft and other heavy machinery. Trump has previously said he would put a 200% tax on any medicines brought into the U.S., but it wouldn't go into effect for at least 18 months.
The letters to the EU and Mexico come after Trump threatened 35% tariffs on some Canadian goods on Thursday.
