Trump intensifies trade war with 30% tariffs on EU and Mexico
The August 1 deadline gives countries targeted by Trump's letters time to negotiate a trade deal that could lower the threatened tariff levels.
The EU had hoped to reach a comprehensive trade agreement with the U.S. for the 27-country bloc.
Three EU officials told Reuters on Saturday that Trump's threats represent a negotiating tactic.
Trump's letter to the EU included a demand that Europe drop its own tariffs, an apparent condition of any future deal.
"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," Trump wrote.
EU President von der Leyen said the 30% tariffs 'would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.'
She also said while the EU will continue to work towards a trade agreement, they 'will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.'
Canada got a higher tariff rate of 35% compared to Mexico, with both letters citing fentanyl flows, even though government data shows the amount of the drug seized at the Mexican border was significantly higher than the Canadian border.
"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.
Mexico sends more than 80% of its total exported goods to the U.S. and free trade with its northern neighbor drove Mexico to overtake China as the U.S.'s top trading partner in 2023.
The European Union had been bracing for the letter from Trump outlining his planned duties on the United States' largest trade and investment partner after a broadening of his tariff war in recent days.
The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realization it will probably have to settle for an interim agreement and hope something better can still be negotiated.
The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on U.S. terms.
Trump's cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the U.S. government. U.S. customs duties revenue shot past $100 billion in the federal fiscal year through to June, according to U.S. Treasury data on Friday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
27 minutes ago
- Euronews
Online platforms get further EU guidance on minor protection online
The European Commission offered online platforms further guidance on how to protect minors on Monday, addressing issues such as addictive design, cyber bullying and harmful content in a bid to ensure that children enjoy high levels of privacy, safety and security. It included setting minors' accounts to private by default, disabling by default features that contribute to excessive use, and prohibiting accounts from downloading or taking screenshots of content posted by minors. The guidelines under the Digital Services Act (DSA), EU-wide legislation that aims to combat illegal content and products, come after the EU executive opened a number of investigations into potential breaches of the DSA in areas related to child protection. Last year, it began investigating Meta's Facebook and Instagram because it suspects that their algorithms may stimulate behavioural addictions in children, as well as create so-called "rabbit-hole effects". In addition, the Commission is also concerned about age-assurance and verification methods put in place by Meta. None of these probes – started since the rules became applicable to the largest online platforms in late 2023 – have been wrapped up yet. Age verification At the same time, several EU member states have been calling for age limits to protect minors from dangerous online content. France, Spain and Greece believe that the algorithms used by social networks expose the very young to addictive content that can ultimately lead to increased anxiety or depression. France's President Emmanuel Macron said last month that the country will ban access to social media for children under the age of 15, if this is not done at a European level. He made the remarks last month after a school staff member was stabbed by a 14-year-old student. The Commission announced on Monday that it will work with five EU countries – Denmark, France, Greece, Italy and Spain – on a customised national age verification application. 'The prototype of the age verification app [...] will, for example, allow users to easily prove they are over 18 when accessing restricted adult content online, while remaining in full control of any other personal information, such as a user's exact age or identity,' the Commission's statement said. Next year, the European Digital Identity Wallets (eID) will be rolled-out – which will be a means of digital identification for everyone in Europe and also allows users to store and sign important documents. The Commission said it hopes to integrate age verification functionalities in the future eID Wallets.
France 24
an hour ago
- France 24
Trump expected to outline Ukraine weapons plan
In a U-turn that has highlighted concerns in Kyiv over the consistency of American support, Trump said this weekend that he would send vital Patriot air defence systems to Ukraine to help it fend off escalating barrages of Russian attacks. Major US outlets like the New York Times and Axios reported Trump will announce a plan that also includes offensive weapons for Ukraine. Putin has refused to halt his more than three-year invasion despite being corralled into peace talks with Ukraine by Trump, drawing increasing scorn and anger from the US president. Moscow has also unleashed record waves of drone and missile strikes over the past few weeks, with the number of Ukrainian civilians killed or wounded in June hitting a three-year high, according to UN figures. The Republican has teased a "major statement" on Russia to be made later on Monday, with NATO chief Mark Rutte visiting the White House. In Kyiv, Ukrainian President Zelensky hailed a "productive meeting" with Trump's special envoy Keith Kellogg. "We discussed the path to peace and what we can practically do together to bring it closer," Zelensky wrote on social media after the meeting. "This includes strengthening Ukraine's air defense, joint production, and procurement of defence weapons in collaboration with Europe," he added. Zelensky also said he was "grateful to President Trump for the important signals of support and the positive decisions for both our countries," in an apparent reference to the pledge of new Patriots. Washington had said earlier this month it would pause some arms deliveries to Kyiv but Trump has changed tack, criticising Putin for intensifying attacks as US-led peace talks stalled. 'Better late than never' Trump has also hinted he might be ready to slap sanctions on Moscow as momentum grows for a deterrent package in Congress. When asked about whether he would announce any levies against Russia, Trump responded on Sunday: "We're going to see what we will see tomorrow, OK?" Zelensky has called for fresh sanctions on Russia and countries that aid its war efforts. "It is clear that Moscow will not stop unless its unreasonable ambitions are curbed through strength," Zelensky said. Asked what Europe expects from Trump's announcement later Monday, a German government source said: "In concrete terms I think it means that from the US side, there will be approvals for the delivery of certain weapons." "There is an expectation from the American side that there will be considerable financial contributions to this end from the European side," the source added. One Ukrainian soldier deployed in the war-scarred east of the country, who identified himself by his call sign Grizzly, welcomed Trump's promise of fresh air defence systems. "Better late than never," he told AFP. "Because while we are here defending the front line, our families are unprotected. Thanks to the Patriots they are giving us, our families will be safer," the 29-year-old added. Russian forces meanwhile said on Monday they had captured new territory in eastern Ukraine with the seizure of two villages, one in the Donetsk region and another in the Zaporizhzhia region. Moscow claimed to have annexed both almost three years ago despite not having full military control over them. Its forces also killed at least three civilians in the eastern Kharkiv and Sumy regions on Monday, regional Ukrainian officials announced. In Kyiv, Zelensky also proposed a major political shake-up, recommending economy minister Yulia Svyrydenko take over as the country's new prime minister to "significantly renew" the government's work.
France 24
an hour ago
- France 24
UK to roll out red carpet for second Trump state visit
The US president "accompanied by the First Lady Mrs. Melania Trump, has accepted an invitation from His Majesty The King to pay a state visit to the United Kingdom from 17 September to 19 September 2025," said a palace statement. The visit will come only two months after Charles, and his wife Queen Camilla, welcomed French President Emmanuel Macron and his wife Brigitte to Windsor. Trump was invited by a personal letter from Charles, which Prime Minister Keir Starmer handed to him in February during a visit to Washington. Starmer has sought to woo Trump with a charm offensive to boost ties and gain better leverage for the UK in tough trade talks with Washington. A delighted Trump, who has long been a big fan of the British royal family, has called the invitation a "very great honour", and opened the letter from the king in the glare of the world's cameras. "This is really special, this has never happened before, this is unprecedented," Starmer said in the Oval Office as he handed Trump a hand-signed letter from the monarch. "This is truly historic." Britain rolled out the red carpet for Trump in 2019 when he met the late Queen Elizabeth II, King Charles's mother. No foreign leader has ever had a second state visit. The Times daily said the king had however sought to put off the new visit until later in Trump's second term, but "Starmer has gone against the wishes of the king" in bringing the visit forward. "The prime minister has expedited a full 'bells and whistles' visit in an attempt to capitalise on the president's fascination with the royal family," The Times said. Canada concerns Starmer will also meet with Trump this month when the Republican leader is expected to visit Scotland, where he has two golf resorts. The visit has not been publicly confirmed by the White House, but Downing Street said Monday that Trump would be "visiting in a private capacity" and "the prime minister is pleased to take up the president's invite to meet during his stay". Trump's threats against Canada have put Charles, who is the country's head of state, in a delicate position. Trump has threatened to slap a 35 percent tariff on imports from Canada starting August 1 and has regularly mused that Canada should become the 51st US state. Reading the letter aloud in the Oval Office in February, Trump said he had been invited to the historic Windsor Castle, near London, one of the royal family's ancient homes. After reading the letter, Trump said of Charles: "He's a beautiful man, a wonderful man -- I've gotten to know him very well, actually. First term and now second term." He added: "On behalf of our wonderful First Lady Melania and myself, the answer is yes and we look forward to being there and honouring the King and honouring really your country." Unlike Macron, who addressed the British parliament during his state visit last week, Trump is not currently scheduled to address the House of Commons which will be then on a break. During the French leader's visit last week, Britain laid on a pomp-filled welcome, including a horse-drawn procession and a lavish banquet in the castle where the leaders hailed a new era in UK-France relations.
