President Donald Trump warned over the weekend that unless major breakthroughs occur in ongoing trade talks, the United States will impose sweeping 30% tariffs on imports from both the European Union and Mexico starting August 1.
The announcement, delivered via formal letters to Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen, signals a hard pivot as negotiations near their deadline. In the letters, Trump framed the move as a long-overdue correction to decades of trade imbalances and foreign exploitation.
“To Mexico: You’ve helped me on the border, but it’s not enough. The cartels are still in charge. Until that changes, tariffs go into effect,” Trump wrote, accusing the Mexican government of failing to dismantle transnational criminal networks that are, in his words, “trying to turn all of North America into a Narco-Trafficking Playground.”
Trump also warned von der Leyen that the European Union’s refusal to drop protectionist barriers on American goods was unacceptable: “We are continuing to talk, but this is not a one-way street,” he said. “Either we get fair trade, or we raise the cost of doing business in America.”
Under Trump’s plan, European firms that relocate manufacturing operations to the U.S. could avoid the new tariffs. However, if the EU retaliates with its own levies, Trump vowed to match them with further increases above the 30% baseline.
Von der Leyen responded by warning that the proposed tariffs would “disrupt essential transatlantic supply chains,” but left the door open to further negotiations. “We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said.
The EU exported over $600 billion in goods to the U.S. in 2024, making the threat of tariffs a major disruption to the global economy.
Trump has already imposed tariffs on European steel and aluminum, and now appears poised to expand the trade war unless foreign leaders meet his demands. Mexico’s government issued a statement saying it is working with U.S. officials to de-escalate the situation and avoid new levies.
On Monday, Trump defended his strategy in a Truth Social post, slamming decades of bipartisan mismanagement.
“The United States has been ripped off on TRADE (and MILITARY!) by friend and foe alike, for DECADES,” he wrote. “It is not sustainable. Countries should sit back and say, ‘Thank you for the many years-long free ride,’ but we now have to do what’s right for America.”
The August 1 deadline is shaping up to be a defining moment for Trump’s second-term trade agenda—one driven by the same America First principles that reshaped global economic policy during his first term.
The post Trump Threatens New Tariffs On Mexico, European Union As Trade Deadline Looms appeared first on Real News Now.
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