Trump Threatens New Tariffs On Mexico, European Union As Trade Deadline Looms

President Donald Trump said over the weekend that he would hit both Mexico and the European Union with a 30% tariff, effective August 1. 

Trump made the announcements in letters sent to Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen on Saturday. In response, von der Leyen stated that the European Union would continue its efforts to reach a trade deal with the United States before the August 1 trade negotiation deadline. 

“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 to von der Leyen. 

He added that there would be no tariffs for European companies that relocate their manufacturing to the United States and that the rates could be adjusted if the European Union dropped trade barriers for American goods. If the European Union retaliated with its own new tariffs, Trump said he would raise the 30% levy by an equal number. 

After Trump’s letter was posted on Truth Social, von der Leyen said that the tariffs would “disrupt essential transatlantic supply chains.” 

“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices. The EU has consistently prioritized a negotiated solution with the U.S., reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership,” she said. 

“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she added. 

The European Union exported about $605.8 billion worth of goods to the United States in 2024. Trump has already imposed tariffs on European steel and aluminum.  

Trump’s letter to Mexico said that it was not doing enough to crack down on drug cartels. 

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” he wrote. “Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground. Obviously, I cannot let that happen!”

He said that if Mexico was successful in stopping the cartels, he would consider an adjustment to the tariff rates. In a statement, Mexico’s government said that it was already negotiating with the American officials over the proposed tariffs. 

On Monday morning, Trump posted on Truth Social that other countries had been taking advantage of the United States through trade. 

“The United States of America has been ripped off on TRADE (and MILITARY!), by friend and foe, alike, for DECADES. It has come at a cost of TRILLIONS OF DOLLARS, and it is just not sustainable any longer – And never was! Countries should sit back and say, ‘Thank you for the many year’s long free ride, but we know you now have to do what’s right for America.’ We should respond by saying, ‘Thank you for understanding the situation we are in. Greatly appreciated!’”