US President Donald Trump has threatened tariffs of up to 30% on imports from the European Union and Mexico, two of America’s largest trading partners. The move is part of a chaotic trade policy that has left many trying to figure out how to plan for the future amidst growing economic uncertainty.
The EU and Mexico will face updated duties on August 1 if Trump’s proposed tariffs come into effect. However, the European Commission has vowed to continue working towards an agreement with the US and warned that the 30% tariff would hurt supply chains, businesses, and consumers across the Atlantic.
French President Emmanuel Macron also expressed strong opposition to the plan, stating that the EU must “resolutely defend European interests” by taking all necessary steps to safeguard its interests. The threat has sparked a growing list of countries facing updated duties on their imports, following Trump’s recent tariff letters that imposed rates of up to 40%.
The proposed tariffs are part of a broader trade dispute over digital services taxes and other EU policies. Trump has blamed the EU for not negotiating in good faith, while the European Commission has pushed back against his claims.
The US-Mexico-Canada Agreement (USMCA) has allowed Mexico to enter the country duty-free if it complies with certain conditions. However, Trump’s latest threat has raised concerns about the impact on trade and economic uncertainty.
Trump has warned that any retaliation from the EU or Mexico would be met with pushback from the US, but European officials have vowed to take all necessary steps to protect their interests. The situation remains volatile as talks between the US and its trading partners continue.
Source: https://edition.cnn.com/2025/07/12/business/trump-tariff-mexico-european-union