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.
President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the key US allies and top trading partners failed to reach a comprehensive trade deal.
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.
President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the key US allies and top trading partners failed to reach a comprehensive trade deal.
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.
President Donald Trump has threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the key US allies and top trading partners failed to reach a comprehensive trade deal.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
33 minutes ago
- Perth Now
EU ready to hit US with $37b tariff list: Italy
The European Union has already prepared a list of tariffs worth 21 billion euros ($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.
7NEWS
2 hours ago
- 7NEWS
Bitcoin tops $US120,000 for the first time
Bitcoin has crossed the $US120,000 level for the first time, marking a milestone for the world's largest cryptocurrency as investors bet on long-sought policy wins for the industry this week. Bitcoin scaled a record high of $US121,207.55 ($A184,489.93) in the Asian session on Monday, before pulling back slightly to last trade 1.6 per cent higher at $US121,015.42 ($A184,197.49). Starting on Monday, the US House of Representatives will debate a series of bills to provide the digital asset industry with the nation's regulatory framework it has long demanded. Those demands have resonated with US President Donald Trump, who has called himself the 'crypto president' and urged policymakers to revamp rules in favour of the industry. 'It's riding a number of tailwinds at the moment,' IG market analyst Tony Sycamore , citing strong institutional demand, expectations of further gains and support from Trump as reasons for the bullishness. 'It's been a very, very, strong move over the past six or seven days and it's hard to see where it stops now; it looks like it can easily have a look at the $US125,000 ($A190,262) level,' he said. The surge in bitcoin, which is up 29 per cent for the year so far, has sparked a broader rally across other cryptocurrencies over the past few sessions even in the face of Trump's chaotic tariffs. Ether, the second-largest token, scaled a more than five-month top of $US3,050.90 ($A4,643.77), while XRP and Solana gained about three per cent each. The sector's total market value has swelled to about $US3.78 trillion ($A5.75) trillion, according to data from CoinMarketCap. Earlier this month, Washington declared the week of July 14 as 'crypto week', where members of Congress are set to vote on the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. The most significant bill is the Genius Act, which would create federal rules for stablecoins. Elsewhere, prices of crypto-listed exchange-traded funds (ETFs) in Hong Kong similarly surged. Spot bitcoin ETFs launched by China AMC, Harvest and Bosera all scaled record highs, while the three ether ETFs managed by the asset managers were up roughly two per cent each.
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Nvidia boss knows how to work Trump but what about the AI jobs carnage?
The head of the world's largest company, Nvidia's Jensen Huang is fighting fires on two fronts, the first is the growing fear of the AI revolution wiping out millions of jobs, the second is selling chips to China without falling foul of Trump's trade war agenda. The White House's recent regulations largely restrict the export of Nvidia's microchips to China, but a $US4 trillion ($6.1 trillion) company needs markets to sell to and the Chinese market is too big to ignore. So which of the twin challenges is more pressing for Huang? Strangely enough, managing the expectations of an unpredictable Trump might be more of a challenge than convincing the world that rendering whole job classifications extinct is actually a good thing. Certainly Trump, at least, is a more immediate challenge – albeit a less profound one. Like our own prime minister Anthony Albanese, Huang is walking a diplomatic tightrope between the leaders of the world's two largest economies – protecting trade relationships with China without provoking the ire of Trump. Loading Huang, who met with Trump last week, is headed to China this week amid reports over the past few days that Nvidia is developing a lower spec chip that would come in under the China export regulation radar. It is a move to reinvigorate Nvidia's China exports following the Trump administration killing sales of the H20 chip. That edict cost Nvidia $US4.5 billion in an inventory writedown last month. Huang's charm offensive appears to involve lining up behind Trump's MAGA strategy of rehabilitating America's industrial economy.
