President Trump on Saturday announced he is levying 30% tariffs against Mexico and the European Union. They are set to begin on August 1.
He announced the tariffs on two of the United States’ biggest trade partners in letters posted on this Truth Social account.
In his letter to Mexican President Claudia Sheinbaum, Mr. Trump acknowledged that the country has helped stem the flow of undocumented migrants and fentanyl into the U.S. But he said the country has not done enough to stop North America from turning into a “Narco-Trafficking Playground.”
“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Mr. Trump added.
In his letter to the European Union, Mr. Trump said the relationship between the bloc and the U.S. has been “far from Reciprocal,” and that the U.S. trade deficit was a national security threat.
“We have had years to discuss our Trading Relationship with The European Union, and have concluded that we must move away from these long-term, large, and persistent Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies and Trade Barriers,” he wrote.
Mr. Trump is in an announcement blitz of new tariffs with allies and foes alike, a bedrock of his 2024 campaign that he said would set the foundation for reviving a U.S. economy that he claims has been ripped off by other nations for decades.
With the reciprocal tariffs, Mr. Trump is effectively blowing up the rules governing world trade. For decades, the U.S. and most other countries abided by tariff rates set through a series of complex negotiations known as the Uruguay Round. Countries could set their own tariffs – but under the “most favored nation” approach, they couldn’t charge one country more than they charged another.
“Our smaller trading partners could become much bigger trading partners,” White House National Economic Council director Kevin Hassett said on “Face the Nation with Margaret Brennan.” “And that’s, I think, one of the reasons why countries are racing to set deals up with us ahead of the deadline.”
The European Union’s chief trade negotiator said earlier this week that a trade deal to avert higher tariffs on European goods imported to the U.S. could be reached “even in the coming days.” Maroš Šefčovič told EU lawmakers in Strasbourg, France on Wednesday that the EU had been spared the increased tariffs contained in the letters Mr. Trump sent on Monday, and that an extension of talks would provide “additional space to reach a satisfactory conclusion.”
The bloc collectively sells more to the U.S. than any other country. U.S. goods imports from the EU topped $553 billion in 2022, according to the Office of the U.S. Trade Representative.
Ursula von der Leyen, president of the European Commission, acknowledged Mr. Trump’s letter and said in a statement on Saturday that imposing the tariffs on EU exports would “disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.”
Philipp von Ditfurth/picture alliance via Getty Images 
“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 U.S., reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership,” she added. “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.”
Steeper tariffs that Mr. Trump announced on April 2 threatened to overhaul the global economy and lead to broader trade wars. A week later, after the financial markets had panicked, his administration suspended for 90 days most of the higher taxes on imports just as they were to take effect, but he kept the 10% baseline in place while raising the tariff rate on goods imported from China. Chinese goods are now subject to 30% across-the-board tariffs. The freeze expired on Wednesday.
With Saturday’s letters, Mr. Trump has now issued tariff conditions on 24 countries and the 27-member European Union.
This is breaking news. Check back for updates.
https://www.cbsnews.com/news/trump-announcement-tariffs-mexico-european-union/
