US President Donald Trump on Saturday announced he would be levying tariffs of 30 percent against the EU and Mexico starting on Aug. 1, a move that could cause massive upheaval between the US and two of its biggest trade partners.
Trump detailed the planned tariffs in letters posted on social media.
In his letter to Mexican President Claudia Sheinbaum, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the US, but added that the country has not done enough to stop North America from turning into a “narco-trafficking playground.”
Photo: Reuters
The Mexican government said it was informed during high-level talks with US Department of State officials on Friday that the Trump letter was coming.
The delegation told Trump officials at the meeting that it disagreed with the decision and considered it “unfair treatment,” according to a Mexican government statement.
Sheinbaum, who has sought to avoid directly criticizing Trump, expressed a measure of confidence during a public appearance on Saturday that the US and Mexico would reach “better terms.”
“I’ve always said that in these cases, you need a cool head to face any problem,” Sheinbaum said.
Meanwhile, Trump in his letter to the EU said the US trade deficit was a national security threat.
“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. “Our relationship has been, unfortunately, far from reciprocal.”
Trump, as he has in previous letters, warned that his administration would further raise tariffs if the EU attempts to hike its own tariffs on the US.
European Commission President Ursula von der Leyen responded by noting the bloc’s “commitment to dialogue, stability, and a constructive transatlantic partnership.”
“At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” Von der Leyen said.
The EU remains committed to continuing negotiations with the US and coming to an agreement before Aug. 1, she said.
Trade ministers from EU countries are scheduled to meet today to discuss trade relations with the US, as well as with China.
European leaders joined Von der Leyen in urging Trump to give negotiations more time and warned of possible new tariffs on Washington.
“With European unity, it is more than ever up to the Commission to assert the Union’s determination to resolutely defend European interests,” French President Emmanuel Macron wrote on social media.
With Saturday’s letters, Trump has now issued tariff conditions on 24 countries and the 27-member EU.
So far, the tally of trade deals struck by Trump stands at two — one with the UK and one with Vietnam. Trump has also announced the framework for a deal with China, the details of which remain fuzzy.
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