Washington: The European Union (EU) and Mexico have voiced their dissatisfaction with US President Donald Trump’s intention to impose a 30% tariff on their imports starting from August 1. Both entities have expressed a desire to continue negotiations with the United States, while also preparing to respond if necessary.
According to BBC, Mexico has labeled Trump’s proposed tariff as an “unfair deal” and emphasized that its sovereignty is non-negotiable. Meanwhile, the EU’s chief, Ursula von der Leyen, has warned that the EU is prepared to adopt “proportionate countermeasures” if required. Trump has cautioned that any retaliatory measures by the US trading partners would result in even higher tariffs.
In communications to both the EU and Mexico, Trump made it clear that any retaliatory tariffs against the US would be met with an increase in tariffs beyond the proposed 30%. During a pre-recorded interview with Fox News, aired on Saturday, Trump mentioned that some countries were unhappy but claimed that the tariffs would result in “hundreds of billions of dollars” flowing into the US.
The EU has been a recurrent target of Trump’s trade policies. On April 2, he suggested a 20% tariff on goods from the bloc and other trade partners, threatening to raise it to 50% if trade talks did not progress. Despite attempts to reach a trade agreement by July 9, no progress has been announced.
In 2024, the US trade deficit with the EU was reported at $235.6 billion. Von der Leyen asserted that the EU is committed to working towards an agreement by August 1 and reiterated the EU’s readiness to safeguard its interests, potentially through countermeasures.
French President Emmanuel Macron expressed strong disapproval of Trump’s tariff proposal, suggesting that the EU expedite preparations for credible countermeasures if an agreement isn’t reached. Similarly, Bernd Lange, head of the European Parliament’s trade committee, criticized Trump’s actions and advocated for immediate countermeasures.
Some EU leaders, like Italian Prime Minister Giorgia Meloni and Dutch Prime Minister Dick Schoof, have called for continued dialogue to avoid a trade war and achieve a mutually beneficial agreement.
The German Association of the Automotive Industry has expressed concern over the potential increased costs for German carmakers, warning of further trade conflict escalation.
In response to Trump’s letter, Mexican President Claudia Sheinbaum expressed optimism about reaching a deal with the US, emphasizing Mexico’s unwavering stance on its sovereignty and outlining areas for potential cooperation with the US.
Trump’s letter did not clarify whether Mexican goods under the 2020 United States-Mexico-Canada Agreement would be exempt from the tariff hike. The White House has indicated that Canadian goods would be exempt, although a separate 35% tariff threat was issued to Canada earlier this week.
The Trump administration has proposed tariff conditions affecting 24 countries and the EU, consisting of 27 countries. White House trade adviser Peter Navarro previously announced a goal of securing “90 deals in 90 days,” with two preliminary agreements reached with the United Kingdom and Vietnam amidst ongoing negotiations with others.