Trade war: Donald Trump threatens 20%–50% tariff on 23 nations
The move, part of a renewed aggressive trade stance, also includes a 50% duty on copper imports.
The letters outline that the proposed 30% general tariff would be in addition to existing levies — such as 50% on steel and aluminum and 25% on autos, which will remain in place. Countries have until August 1 to negotiate individual trade deals to avoid the hikes.
This marks a return to Trump's hardline approach seen earlier this year, when a similar round of tariff announcements jolted global markets before being postponed.
EU and Mexico condemn proposed tariffs as unfair
Earlier on Saturday, Trump warned he would impose a 30% tariff on imports from the European Union and Mexico starting August 1, after trade talks with both sides failed to reach a full agreement.
The announcement, shared through letters posted on Trump's Truth Social account, marks a sharp escalation in trade tensions. It has alarmed US allies and shaken investor confidence.
Despite global pushback, Trump appears undeterred, buoyed by a strong US economy and record stock market highs.
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In his letter to the European Commission, Trump demanded that the EU remove all tariffs on US goods, claiming the bloc must help reduce America's trade deficit.
Both the EU and Mexico, key US trade partners, condemned the proposed tariffs as unfair and disruptive. Despite the warning, they expressed willingness to continue negotiations in hopes of reaching a broader deal before the deadline.
Mexican President Claudia Sheinbaum said she remained confident that an agreement could still be finalised.
"I've always said that in these cases, what you have to do is keep a cool head to face any problem," Sheinbaum said.
"We're also clear on what we can work with the United States government on, and we're clear on what we can't. And there's something that's never negotiable: the sovereignty of our country," she added.
European Commission President Ursula von der Leyen said that, "The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit," he wrote.
She also warned that the 30% tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic."
Trump has so far only reached framework trade deals with a few countries like the UK, China, and Vietnam. Talks with other major partners remain ongoing.
Mexican tariff proposal below Canadian rate
The proposed tariff rate for Mexico is less than Canada's 35%, with both nations' correspondence mentioning fentanyl trafficking, despite official statistics indicating substantially higher seizures at the Mexican frontier compared to the Canadian border, according to Reuters.
"Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," Trump wrote.
China remains the primary supplier of precursor chemicals for fentanyl production.
Fentanyl to fix trade and toxins
According to US authorities, just 0.2% of all fentanyl seized in the country comes through the Canadian border, with the overwhelming majority smuggled in from Mexico via the southern border.
Mexico, which sends over 80% of its exports to the US , became America's top trading partner in 2023, largely driven by free trade between the two nations.
Meanwhile, the European Union had initially aimed for a full-scale trade deal with the US but has since dialed back its ambitions. It is now pursuing a more flexible framework agreement, similar to the one struck with the UK, leaving finer details to be worked out over time.
The EU faces internal tensions as Germany advocates for swift agreement to protect its industrial interests, whilst other members, including France, advise against accepting unfavourable US terms.
Bernd Lange, who leads the European Parliament's trade committee, advised Brussels to implement counter-measures immediately. "This is a slap in the face for the negotiations. This is no way to deal with a key trading partner," Lange told Reuters.
Trump's recent tariff directives have generated substantial revenue, with US customs duties exceeding $100 billion in the fiscal year through to June, according to US Treasury figures. These measures have affected diplomatic relations with close US allies.
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