Trump announces sweeping tariffs on America's biggest trading partners as he slams 'major threat to economy'

Daily Mail​

a day ago

Donald Trump has imposed sweeping tariffs on the US' biggest trading partners sparking fears of huge price hikes for consumers.
The president announced he will be placing a 30 percent tariff rate on imports from Mexico and the European Union in an escalation of his trade war.
The EU and Mexico are the US' biggest trade partners and import billions into the country every year.
In letters to the President of the European Commission, Ursula von der Leyen, and Mexican President, Claudia Sheinbaum, Trump revealed the levies will come into effect on August 1.
He said that the tariffs were brought in following the failure of negotiations with the EU and in response to Mexico's failure to get a grip on the fentanyl crisis.
It comes after Trump issued new tariff announcements for a number of countries, including Japan, South Korea, Canada and Brazil, as well as a 50 percent tariff on copper.
The new tariffs could increase prices for US consumers on everything from medical equipment to cars, as both Mexico and the EU export large amounts to America.
The price of coffee has already risen by 11 percent due to tariffs on Brazil and is expected to rise further.
The EU had hoped to reach a comprehensive trade agreement with the US for the 27-country bloc. Trump claimed the EU has the 'largest trade deficits' with the US.
In 2023, the EU exported $587billion worth of goods to the US, while importing $402billion from America.
The US is the largest trade partner for EU exports, accounting for nearly 20 percent of the total extra-EU goods, followed by China at 14 percent. The biggest import the EU received from the US is crude petroleum oils.
'Nevertheless, we have decided to move forward, but only with more balanced and fair TRADE,' he wrote. 'Please understand that the 30 percent number is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU.
'This Deficit is a major threat to our Economy and, indeed, our National Security!'
The Republican offered the EU the opportunity to build manufacturing facilities in the US to evade the 30 percent tariff, which only applies to imports.
He said those facilities could be approved as quickly as a 'matter of weeks'.
Von der Leyen reacted to Trump's letter, threatening in a statement that the EU will consider 'countermeasures' if need be.
'Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,' she said.
'Few economies in the world match the European Union's level of openness and adherence to fair trading practices. The EU has consistently prioritized a negotiated solution with the US, reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership.
'We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.'
The EU was prewarned on Friday that the US president planned on imposing high tariffs, EU Executive Firm spokesperson Paula Pinho said.
In 2024, Mexico was the largest exporter to the US and the Southern neighbor was the second-largest destination for US exports, the US Trade Representative Office said.
More than 80 percent of Mexico's exports go to the US, while 40 percent of their imports come from The States.
The US exported $334billion worth of goods to Mexico, while importing $506billion from the cartel-ridden country.
This means billions worth of products coming into the US will now be under a 30 percent tariff starting August 1, which will raise prices for American as the increase is often passed off onto the consumer.
In a letter to Mexican President, Claudia Sheinbaum Pardo, he imposed a 30 percent tariff due to the country's, 'failure to stop the Cartels, who are made up of the most despicable people who ever walked the Earth.'
'Mexico has been helping me secure the border, BUT, what Mexico has done is not enough,' Trump wrote.
'Mexico still has not stopped the Cartels, who are trying to turn all of North America into a Narco-Trafficking Playground. Obviously, I cannot let that happen!'
He also reiterated to Sheinbaum that the trade deficit was a threat to the American economy and national security.
He offered the same roundabout to Mexico as the EU by allowing them to build manufacturers in the US.
Trump also threatened to raise the tariff if Mexico raises theirs against the US. He also said if the country is, 'successful in challenging the Cartels and stopping the flow of Fentanyl,' the tariffs can be renegotiated.
Trump threw a grenade on the tariff negotiations between the United States and Canada with a blistering letter to Prime Minister Mark Carney on Thursday.
The two nations have been trying to settle the tariff war that broke out when Trump returned to office and announced plans to reorganize world trade.
Canadian officials had hoped a deal was close, but Trump's latest letter - which he shared to Truth Social on Thursday night - has set negotiations back to square one.
The letter revealed he would raise tariffs on Canadian products to 35 percent from August 1 - a 10 percent increase on the current levy.
Trump said the tariff hike was in part due to the fentanyl crisis and Canada's 'failure to stop the drugs from pouring into our country.'
'I must mention that the flow of fentanyl is hardly the only challenge we have with Canada, which has many tariff, and non-tariff, policies and trade barriers,' Trump wrote in the letter.
Trump said 'the fact the United States has agreed to continue working with Canada, despite Canada having financially retaliated against the United States', demonstrates the 'deep commitment to our trading relationship.'
The letter did include a warning shot to Carney, vowing to continue upping the US tariffs if Canada was to impose retaliatory taxes.
He said he would consider 'an adjustment to this letter' if 'Canada works with me to stop the flow of Fentanyl.'
'These tariffs may be modified, upward or downward, depending on our relationship with your country,' he added.
The latest round of tariffs are in addition to previously imposed sectoral tariffs on steel, copper and aluminum, which came into effect for most countries on June 4 at a whopping 50 percent.
Trump's punishing hike sparked fears American households would see an increase in costs for everyday items, given foreign-made steel and aluminum is used in household products like soup cans and paper clips, as well as big-ticket items like a stainless-steel refrigerators and cars.
The two metals had previously faced 25 percent tariffs worldwide since mid-March, when Trump's order to remove steel exemptions and raise aluminum's levy went into effect.
The August 1 deadline is expected to be the last delay on tariffs.
Four insiders told Politico that the president does not plan on allowing more grace to countries to figure out how to balance the trade deficit.
'On August 1, it's all kicking in,' Trump's former White House Chief Strategist, Steve Bannon, said.
The insiders said foreign countries are taking the new deadline seriously.