Trump Threatens 30% Tariffs On EU And Mexico From August 1

U.S. President Donald Trump announced new 30% tariffs on goods from the European Union and Mexico, citing trade imbalances and ongoing negotiations as justification for the aggressive trade move.

July 12, 2025Clash Report

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Trump’s messages to European and Mexican leaders were posted on Truth Social and described as part of a broader push to secure favorable trade terms. The EU tariff represents a 10-point increase from the “Liberation Day” tariffs set in April, while Mexico’s increase builds on a March tariff imposed over drug trafficking concerns.

Together, the EU and Mexico account for around $1.1 trillion in U.S. imports annually. Trump claimed the EU must offer "complete, open market access" for American goods and warned of matching any retaliatory measures. Commerce Secretary Howard Lutnick stated a deal with the EU is already “on Trump’s desk.”

European Commission President Ursula von der Leyen emphasized continued commitment to dialogue but vowed to “safeguard EU interests” through proportionate responses. Irish and Italian leaders also backed a negotiated outcome, though they did not dismiss the option of retaliation.

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Mexico Responds To Fentanyl, Trade Accusations

Trump’s letter to Mexico accused the country of allowing fentanyl trafficking that turns the U.S. into a "Narco-Trafficking Playground." The Mexican government rejected the claims but confirmed that a delegation met with U.S. officials to establish a joint working group.

Mexican President Claudia Sheinbaum’s administration labeled the tariff threat “unfair” yet signaled willingness to negotiate. Under the proposed plan, tariffs would apply only to goods failing to comply with USMCA rules, though final implementation details remain pending.

Trump also announced a 35% tariff on Canadian goods in a related move, citing similar frustrations over fentanyl enforcement. The coordinated tariff policy signals a dramatic return to Trump’s hardline trade agenda as global partners brace for potential economic fallout.

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Trump Threatens 30% Tariffs On EU And Mexico From August 1