Trump announces 30% tariff on EU, Mexico goods starting August 1

“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote in the letter to the EU. “Our relationship has been, unfortunately, far from Reciprocal.”

As per a report by The Guardian, last week the EU and US were closing in on a high-level “framework” trade deal that would avert 50 per cent tariffs on all exports from the bloc, the US’s biggest trading partner.

In his letter to Mexico’s president, Trump acknowledged the country’s efforts in curbing the flow of undocumented migrants and fentanyl into the United States.

However, he criticised those actions as insufficient, warning that North America is at risk of becoming a “narco-trafficking playground.”

Trump escalated his trade offensive this week, sending over 20 letters to foreign governments, including Japan, South Korea, Canada and Brazil, warning of steep new tariffs unless bilateral trade agreements are reached by 1 August. The US president also issued a 50 per cent tariff on copper.

Back in April, Trump introduced a 10 per cent baseline tariff on imports, along with additional duties of up to 50 per cent targeting specific countries. However, following widespread market anxiety, he postponed the implementation of all tariffs—except the 10 per cent rate—until 9 July.

As the 90-day grace period expired this week, Trump unveiled a fresh set of tariff rates for various nations, while pushing their enforcement date to next month.

US Treasury Secretary Scott Bessent said he anticipated several trade deals would be announced this week. However, so far, the US has finalised only two agreements.

The first, signed with the United Kingdom on 8 May, imposes a 10 per cent tariff on most British goods, including automobiles, while exempting steel and aluminium from any duties. The second agreement, reached with Vietnam last week, sets a 20 per cent tariff on a broad range of Vietnamese exports. However, the full terms of the deal remain unclear, as no official text has been released.