Trump intensifies trade war with 30% tariff on EU, Mexico from August 1
Both sets of duties would take effect August 1, Trump said in separate letters posted to his Truth Social platform, citing Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the EU respectively.
The duties are higher than the 25 per cent levy Trump imposed on Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement are exempted.
Canada earlier received a similar letter setting out 35 per cent tariffs on its goods.
The EU tariff is also markedly steeper than the 20 per cent levy Trump unveiled in April, as negotiations with the bloc continue.
The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 per cent on Wednesday, but Trump pushed back the deadline to August 1 just days before the elevated rates were due to take effect.
Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
2 hours ago
- Zawya
Wall St futures wobble on fresh tariff threats ahead of data, earnings deluge
U.S. stock index futures slipped on Monday, as President Donald Trump's fresh tariff threats targeting the European Union and Mexico dampened investor sentiment ahead of a week packed with economic data and second-quarter earnings. Over the weekend, Trump announced plans to slap a 30% tariff on most imports from the EU and Mexico starting August 1, adding similar warnings to other countries, giving them less than three weeks to strike framework deals. The EU said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement. At 5:30 a.m. ET, Dow E-minis were down 130 points, or 0.29%, S&P 500 E-minis were down 17.75 points, or 0.28%, and Nasdaq 100 E-minis were down 65 points, or 0.28%. The measured losses indicated investors are more accustomed to Trump's repeated tariff threats. "The moves have not been larger since investors see these threats as a Washington negotiating tactic to push the other side over the line into a deal," ING analysts said in a note. However, Wall Street's march to record highs will be put to test this week with the start of the second-quarter earnings season by major banks and June's consumer price data, due on Tuesday. On Friday, the S&P 500 receded from an all-time high it hit the day before, and closed lower. It capped last week with minor losses. Meanwhile, producer and import price reports due Wednesday could reveal how supply chain costs are evolving, and retail sales figures later in the week will offer a snapshot of consumer health. Also on the docket are at least seven Federal Reserve officials due to speak through the week. Amid the economic data deluge, traders have almost entirely ruled out a July rate cut from the Fed, though the odds for a September move still hover around 60%. Investors are also keeping a close watch on tensions between the White House and the U.S. central bank, after economic adviser Kevin Hassett said over the weekend that Trump might have cause to fire Fed Chair Jerome Powell, citing cost overruns from the central bank's headquarters renovation. Among stocks, Boeing rose 2% in premarket trading after a preliminary report from the Air India crash probe suggested no immediate action against the planemaker. Crypto stocks ticked up after bitcoin topped $120,000 for the first time. Coinbase global rose 1.5%, while Bitfarms gained 3.7%. Strategy advanced 2.9%, while Riot platforms was up 2.4%. (Reporting by Pranav Kashyap in Bengaluru; Editing by Maju Samuel)
Khaleej Times
2 hours ago
- Khaleej Times
Europe scrambles to avert 30% US tariffs as stocks slide across sectors
European firms called on trade negotiators to redouble efforts to strike a deal with Washington after U.S. President Donald Trump threatened a 30% tariff on EU imports from August, with no mention of hoped-for special treatment for cars or spirits. Trump on Saturday said he planned to impose the higher tariff rate on imports from Mexico and the European Union from August 1, mounting pressure on Brussels to scramble for a deal to avert a potential massive blow to the bloc's economy. The move sparked a slide in European autos and alcohol stocks on Monday, while regional food makers said the 30% rate, if imposed, would be "disastrous." "The escalating tariff conflict with the USA poses a serious threat to many German companies," said Volker Treier, head of trade at Germany's DIHK chamber of commerce, urging ministers to quickly seal a deal. "Tough negotiations are now needed to avert a collapse of transatlantic trade. Only a united Europe can effectively defend its economic interests." Carmakers' shares slipped, with Volkswagen, Fiat-to-Jeep owner Stellantis, Renault, BMW , Mercedes-Benz and Porsche all down around 1-2%. The threatened 30% tariff is "separate from all sectoral tariffs," Trump wrote in a letter to European Commission President Ursula von der Leyen, implying a 27.5% duty on autos, in effect since April, would still stand. Uncertainty The announcement of the additional possible tariff adds more uncertainty into one of the world's biggest trade partnerships, with some $975.9 billion of two-way goods trade last year, USTR data show. Mercedes-Benz said in a statement that an agreement was "crucial for the future economic success of both markets" in Europe and the United States, and for parties involved to work "intensively and as quickly as possible on a trade agreement." Shares in other major European firms exposed to the United States were also largely down. Pernod Ricard, maker of Jameson whiskey, was down 1.5%, while cognac maker Remy Cointreau sank 4%. Rival Diageo, where sales of Canadian whisky and Mexican tequila drive its U.S. business, bucked the trend, up over 0.5%. French luxury powerhouse LVMH dropped 1.5%, while consumer goods firm Nestle, Procter Gamble and Reckitt Benckiser were down less than 1%. "The biggest problem with the current tariff policy is the lack of a stable, predictable tariff framework," said Pal Skirta, analyst at Metzler Equities, adding it made business planning and operations "significantly more complex" and costly.
TECHx
2 hours ago
- TECHx
Bitcoin Hits $120,000 as U.S. Debates Crypto Bills
Home » Latest news » Bitcoin Hits $120,000 as U.S. Debates Crypto Bills Bitcoin crossed the $120,000 level for the first time on Monday. The new high marked a significant point for the world's largest cryptocurrency. The increase came as investors responded to expected policy changes in the digital asset space. On Monday, the U.S. House of Representatives began debating a set of bills. These bills aim to establish a regulatory framework for the digital asset industry. The industry has long requested clear rules to guide operations in the U.S. U.S. President Donald Trump has recently voiced support for the sector. He has called himself the 'crypto president.' He also urged policymakers to update regulations in favor of the industry. His stance has drawn attention from investors and lawmakers alike. Bitcoin rose to a record high of $121,207.55 during the Asian session. It later traded 1.5% higher at $120,856.34. The cryptocurrency is now up 29% for the year. The following developments were reported: Investors are betting on long-awaited regulatory clarity. Crypto-related policy discussions in Washington are gaining momentum. Bitcoin's rise has sparked gains across the broader cryptocurrency market. Ether, the second-largest token, reached a five-month high. It hit $3,048.23 on Monday before trading at $3,036.24. The total market capitalization of the sector reached around $3.78 trillion. This figure is based on data from CoinMarketCap. Analysts noted that market momentum continues despite ongoing global trade uncertainty. Tariff-related developments under Trump's platform have not slowed investor interest in crypto. The Bitcoin $120,000 milestone comes at a time of growing alignment between crypto industry goals and U.S. political priorities. Observers will closely monitor how the upcoming policy decisions affect the market. Source: Reuters
