Trump hits EU, Mexico with 30 per cent tariffs
In an escalation of Trump's trade war, the fresh tariffs were announced in separate letters to European Commission President Ursula von der Leyen and Mexico's President Claudia Sheinbaum posted on Truth Social on Saturday.
The European Union and Mexico are among the largest US trading partners.
Trump has sent similar letters to 23 other US trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper.
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 US 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 per cent 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 per cent compared to Mexico, with both letters citing fentanyl flows, even though government data shows the amount of the drug seised 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 per cent of its total exported goods to the US and free trade with its northern neighbour drove Mexico to overtake China as the US'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 realisation 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 US 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 US government. US customs duties revenue shot past $US100 billion ($A152 billion) in the federal fiscal year through to June, according to US Treasury data on Friday.
Spokespeople for Mexican President Claudia Sheinbaum and Mexico's Economy Ministry did not immediately respond to requests for comment.
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Chinese blue chips closed 0.1 per cent higher as data showed annual export growth topped forecasts at 5.8 per cent in June, even as exports to the US fell almost 10 per cent. Retail sales figures, industrial output and gross domestic product are due Tuesday. S&P 500 futures and Nasdaq futures both eased 0.4 per cent. Earnings season kicks off this week with the major banks leading the pack on Tuesday. In bond markets, Treasuries got a very marginal safety bid and 10-year yields held at 4.41 per cent. US consumer prices data for June are due on Tuesday and could finally start to show early upward pressure from tariffs, though retailers still have pre-levy inventory to draw on and some companies are absorbing the costs into margins. The impact on supply chain costs could show in producer price and import price figures this week, while a reading on retail sales will indicate how consumers are faring. 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He said, however, he was confident that progress could be made in negotiations. "Tariffs hurt every one, starting with the United States," he said. "If stock markets fall that puts at risk the pensions and the savings of the Americans." He said the goal should be "zero tariffs" and an open market among Canada, the United States, Mexico and Europe. German Chancellor Friedrich Merz said on Sunday he would work intensively with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the escalating trade war with the United States. European Trade Commissioner Maros Sefcovic said on Monday that Washington and Brussels were approaching a positive outcome for both sides, and warned that a 30 per cent tariff would practically eliminate trade. The European Union has already prepared a list of tariffs worth 21 billion euros ($A37 billion) on US goods if the two sides fail to reach a trade deal, Italy's Foreign Minister Antonio Tajani says. President Donald Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the EU starting on August 1 after weeks of negotiations with major US trading partners failed to reach a comprehensive deal. Tajani told daily newspaper Il Messaggero that to help the euro zone economy the European Central Bank should consider a new "quantitative easing" bond-buying-program, and more interest rate cuts. The European Union said on Sunday it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement. Tajani said the 21-billion-euro package of tariffs the EU had already prepared could be followed by a second set if a deal with the US proved impossible. He said, however, he was confident that progress could be made in negotiations. "Tariffs hurt every one, starting with the United States," he said. "If stock markets fall that puts at risk the pensions and the savings of the Americans." He said the goal should be "zero tariffs" and an open market among Canada, the United States, Mexico and Europe. German Chancellor Friedrich Merz said on Sunday he would work intensively with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the escalating trade war with the United States. European Trade Commissioner Maros Sefcovic said on Monday that Washington and Brussels were approaching a positive outcome for both sides, and warned that a 30 per cent tariff would practically eliminate trade. The European Union has already prepared a list of tariffs worth 21 billion euros ($A37 billion) on US goods if the two sides fail to reach a trade deal, Italy's Foreign Minister Antonio Tajani says. President Donald Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the EU starting on August 1 after weeks of negotiations with major US trading partners failed to reach a comprehensive deal. Tajani told daily newspaper Il Messaggero that to help the euro zone economy the European Central Bank should consider a new "quantitative easing" bond-buying-program, and more interest rate cuts. The European Union said on Sunday it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement. Tajani said the 21-billion-euro package of tariffs the EU had already prepared could be followed by a second set if a deal with the US proved impossible. He said, however, he was confident that progress could be made in negotiations. "Tariffs hurt every one, starting with the United States," he said. "If stock markets fall that puts at risk the pensions and the savings of the Americans." He said the goal should be "zero tariffs" and an open market among Canada, the United States, Mexico and Europe. German Chancellor Friedrich Merz said on Sunday he would work intensively with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the escalating trade war with the United States. European Trade Commissioner Maros Sefcovic said on Monday that Washington and Brussels were approaching a positive outcome for both sides, and warned that a 30 per cent tariff would practically eliminate trade. The European Union has already prepared a list of tariffs worth 21 billion euros ($A37 billion) on US goods if the two sides fail to reach a trade deal, Italy's Foreign Minister Antonio Tajani says. President Donald Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the EU starting on August 1 after weeks of negotiations with major US trading partners failed to reach a comprehensive deal. Tajani told daily newspaper Il Messaggero that to help the euro zone economy the European Central Bank should consider a new "quantitative easing" bond-buying-program, and more interest rate cuts. The European Union said on Sunday it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement. Tajani said the 21-billion-euro package of tariffs the EU had already prepared could be followed by a second set if a deal with the US proved impossible. He said, however, he was confident that progress could be made in negotiations. "Tariffs hurt every one, starting with the United States," he said. "If stock markets fall that puts at risk the pensions and the savings of the Americans." He said the goal should be "zero tariffs" and an open market among Canada, the United States, Mexico and Europe. German Chancellor Friedrich Merz said on Sunday he would work intensively with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the escalating trade war with the United States. European Trade Commissioner Maros Sefcovic said on Monday that Washington and Brussels were approaching a positive outcome for both sides, and warned that a 30 per cent tariff would practically eliminate trade.
