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Chicago Tribune
17-07-2025
- Business
- Chicago Tribune
President Trump announces 30% tariffs against Mexico, EU to begin Aug. 1
BRIDGEWATER, N.J. — President Donald Trump on Saturday announced he's levying tariffs of 30% against the European Union and Mexico starting Aug. 1, a move that could cause massive upheaval between the United States and two of its biggest trade partners. Trump detailed the planned tariffs in letters posted to his social media account. They are part of an announcement blitz by Trump of new tariffs aimed at 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. In his letter to Mexico's leader, President Claudia Sheinbaum, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States. 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,' Trump added. Trump in his letter to the European Union said the U.S. trade deficit was a national security threat. 'We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,' Trump wrote in the letter to the EU. 'Our relationship has been, unfortunately, far from Reciprocal.' The letters come in the midst of an on-and-off Trump threat to impose tariffs on countries and right an imbalance in trade. Trump in April imposed tariffs on dozens of countries, before pausing them for 90 days to negotiate individual deals. As the three-month grace period ended this week, Trump began sending his tariff letters to leaders but again has pushed back the implementation day for what he says will be just a few more weeks. If he moves forward with the tariffs, it could have ramifications for nearly every aspect of the global economy. European Union Commission President Ursula von der Leyen responded by noting the bloc's 'commitment to dialogue, stability, and a constructive transatlantic partnership.' 'At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,' von der Leyen said in a statement. Von der Leyen added that the EU remains committed to continuing negotiations with the U.S. and coming to an agreement before Aug. 1. Trade ministers from EU countries are scheduled to meet Monday to discuss trade relations with the U.S., as well as with China. European leaders joined von der Leyen in urging Trump to give negotiations more time and warnings of possible new tariffs on Washington. 'With European unity, it is more than ever up to the Commission to assert the Union's determination to resolutely defend European interests,' French President Emmanuel Macron said in a statement posted on X. Italian Premier Giorgia Meloni's office said 'it would make no sense to trigger a trade war between the two sides of the Atlantic.' Danish Foreign Minister Lars Løkke Rasmussen told broadcaster DR that Trump was taking a 'pointless and a very shortsighted approach.' Swedish Prime Minister Ulf Kristersson warned in an interview with SVT that 'everyone loses out from an escalated trade conflict, and it will be U.S. consumers who pay the highest price.' Trump, as he has in previous letters, warned that his administration would further raise tariffs if the EU attempts to hike its own tariffs on the United States. The Mexican government said it was informed during high-level talks with U.S. State Department officials Friday that the Trump letter was coming. The delegation told Trump officials at the meeting it disagreed with the decision and considered it 'unfair treatment,' according to a Mexican government statement. Sheinbaum, who has sought to avoid directly criticizing Trump in the early going of her presidency, expressed a measure of confidence during a public appearance on Saturday that the U.S. and Mexico will reach 'better terms.' 'I've always said that in these cases, you need a cool head to face any problem,' Sheinbaum said. With the reciprocal tariffs, Trump is effectively blowing up the rules governing world trade. For decades, the United States 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. The Mexico tariff, if it goes into effect, could replace the 25% tariffs on Mexican goods that do not comply with the existing U.S.-Mexico-Canada free trade agreement. Trump's letter did not address if USMCA-compliant goods would still be exempt from the Mexico tariffs after Aug. 1, as the White House said would be the case with Canada. Trump sent a letter to Canada earlier this week threatening a 35% tariff hike. With Saturday's letters, Trump has now issued tariff conditions on 24 countries and the 27-member European Union. So far, the tally of trade deals struck by Trump stands at two — one with the United Kingdom and one with Vietnam. Trump has also announced the framework for a deal with China, the details of which remain fuzzy. Treasury Secretary Scott Bessent on Saturday said the U.K. 'smartly' acted early. 'Let this be a lesson to other countries – earnest, good faith negotiations can produce powerful results that benefit both sides of the table, while correcting the imbalances that plague global trade,' Bessent said in a posting on X. Douglas Holtz-Eakin, a former Congressional Budget Office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks were not taking place over the past three months. He stressed that nations were instead talking amongst themselves about how to minimize their own exposure to the U.S. economy and Trump. 'They're spending time talking to each other about what the future is going to look like, and we're left out,' Holtz-Eakin said. If the tariffs do indeed take effect, the potential impact on Europe could be vast. The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat. Europe's biggest exports to the U.S. were pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits. Lamberto Frescobaldi, president of the Union of Italian Wines trade association, said Trump's move could lead to 'a virtual embargo' of his country's wine. 'A single letter was enough to write the darkest chapter in relations between two historic Western allies,' Frescobaldi said. Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more goods from European businesses than the other way around. However, American companies fill some of the gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. The U.S. services surplus took the nation's trade deficit with the EU down to 50 billion euros ($59 billion), which represents less than 3% of overall U.S.-EU trade.
Local Italy
14-07-2025
- Business
- Local Italy
Italy's Meloni warns of Western 'trade war' risk after Trump's latest tariff threat
"A trade war within the West would weaken us all in the face of the global challenges we are confronting together," Meloni said in a statement. "Europe has the economic and financial strength to assert its position and reach a fair and sensible agreement," she added, noting that 'Italy will do its part, as always'. Trump threw weeks of EU-US negotiations into disarray on Saturday after he said he would hit the 27-nation bloc with punishing 30 percent levies if no trade agreement is reached by August 1st. In a letter to European Commission President Ursula von der Leyen, he said the relationship between the EU and the US 'has been, unfortunately, far from reciprocal' in recent years. "Starting on August 1, 2025, we will charge The European Union a Tariff of only 30% on EU products sent into the United States," Trump wrote. "Please understand that the 30% number is far less than what is needed to eliminate the Trade Deficit disparity," he added. Von der Leyen condemned Trump's move on Saturday, saying that "30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". Despite the latest tariff threat, Brussels was "ready to continue working towards an agreement by August 1," von der Leyen added. A first round of EU "countermeasures" retaliating for US levies on steel and aluminium goods was originally scheduled to come into force on Monday, July 14th. But Brussels delayed the retaliatory tariffs until August 1st to allow for further trade talks with the US. "This is the time for negotiations," von der Leyen told reporters in Brussels on Sunday. The bloc is Washington's biggest trading partner, with the value of EU-US trade in goods and services standing at €1.7 trillion in 2024, according to EU statistics agency Eurostat. The EU as a whole has an annual trade surplus with the US of around $235.6 billion, according to the Bureau of Economic Analysis (BEA), which reports to the US Department of Commerce. Only China has a higher yearly surplus. Experts have warned that Italy – the world's fourth-largest exporter – would be hit particularly hard by US levies, as around 10 percent of its exports go to the US. Italy's main agricultural lobby group Coldiretti said on Saturday that tariffs of 30 percent on EU goods would deal a "deadly blow" to Italian agri-food businesses, causing losses of up to €2.3 billion. Maurizio Gardini, head of business lobby Confcooperative, said that Italy's exports and manufacturing sectors would suffer a "technical knockout" if the threatened levies were to come into force. With reporting from AFP.
Time of India
13-07-2025
- Business
- Time of India
Donald Trump announces 30% tariffs on EU, Mexico
US President Donald Trump on Saturday announced he's levying tariffs of 30 per cent against the and Mexico starting Aug 1, a move that could cause massive upheaval between US and two of its biggest trade partners. Tired of too many ads? go ad free now Trump detailed the planned tariffs in letters posted to his social media account. They are part of an announcement blitz by Trump of new tariffs with allies and foes alike, a bedrock of his 2024 campaign that he said would set the foundation for reviving a US economy that he claims has been ripped off by other nations for decades. In his letter to Mexico's leader, President Claudia Sheinbaum, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into US. 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," Trump added. Trump in his letter to the European Union said that the US trade deficit was a national security threat. EU says it still wants US trade deal "We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers," Trump wrote in the letter to the EU. "Our relationship has been, unfortunately, far from Reciprocal." The letters come in the midst of an on-and-off Trump threat to impose tariffs on countries and right an imbalance in trade. Trump in April imposed tariffs on dozens of countries, before pausing them for 90 days to negotiate individual deals. As the three-month grace period ended this week, Trump began sending his tariff letters to leaders but again has pushed back the implementation day for what he says will be just a few more weeks. Tired of too many ads? go ad free now If he moves forward with the tariffs, it could have ramifications for nearly every aspect of the global economy. European Union Commission president Ursula von der Leyen responded by noting the bloc's "commitment to dialogue, stability, and a constructive transatlantic partnership." "At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," von der Leyen said in a statement. Von der Leyen added that the EU remains committed to continuing negotiations with the US and coming to an agreement before Aug 1. Trade ministers from EU countries are scheduled to meet Monday to discuss trade relations with the US, as well as with China. European leaders joined von der Leyen in urging Trump to give negotiations more time and warnings of possible new tariffs on Washington. "With European unity, it is more than ever up to the Commission to assert the Union's determination to resolutely defend European interests," French President Emmanuel Macron said in a statement posted on X. Italian Premier Giorgia Meloni's office said "it would make no sense to trigger a trade war between the two sides of the Atlantic". European leaders had held out hope that they would avoid receiving a letter, and that a deal would be worked out. The bloc collectively sells more to the US than any other country. US goods imports from the EU topped $553 billion in 2022, according to the Office of the US Trade Representative. Europe's biggest exports to the US were pharmaceuticals, cars, aircraft, chemicals, medical instruments and spirits. Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more goods from Europe than the other way around. However, American companies fill some of the gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. With the reciprocal tariffs, Trump is effectively blowing up the rules governing world trade. For decades, the United States 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 favoured nation' approach, they couldn't charge one country more than they charged another
ITV News
12-07-2025
- Business
- ITV News
Trump announces 30% tariffs on imports from EU and Mexico
US President Donald Trump has announced he will introduce 30% tariffs on imports from Mexico and the European Union. In a post on his platform, Truth Social, Trump announced the measures and said they would come into effect on August 1. He claimed Mexico had not done enough to help him "secure the border" and prevent the US from becoming a "narco-trafficking playground". Trump went on to criticise the EU, and wrote: 'We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers. 'Our relationship has been, unfortunately, far from Reciprocal.' The Mexican government described the proposed move as "unfair treatment". European Union Commission President Ursula von der Leyen responded by noting the bloc's 'commitment to dialogue, stability, and a constructive transatlantic partnership. 'At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.' Italian Premier Giorgia Meloni's office said "it would make no sense to trigger a trade war between the two sides of the Atlantic." It follows a spate of threats from trump to impose tariffs on certain countries to right an imbalance in trade. Trump threatened a 35% tariff on goods from Canada on Thursday, and a 50% increase on import taxes for Brazil. In April, dozens of countries were slapped with tariffs, before he paused them for 90 days to negotiate individual deals. As the three-month grace period ended this week, Trump began sending his tariff letters to leaders - but he has again pushed back the implementation day for what he says will be just a few more weeks.
Los Angeles Times
12-07-2025
- Business
- Los Angeles Times
Trump announces 30% tariffs against EU, Mexico to begin August 1
BRIDGEWATER, New Jersey — President Donald Trump on Saturday announced he's levying tariffs of 30% against the European Union and Mexico starting August 1. Trump announced the planned tariffs on two of the United States' biggest trade partners in letters posted to his social media account. They are part of an announcement blitz by Trump 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. In his letter to Mexico's leader, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States. 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,' Trump added. Trump in his letter to the European Union said 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 we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,' Trump wrote in the letter to the EU. 'Our relationship has been, unfortunately, far from Reciprocal.' European Union Commission President Ursula von der Leyen responded by noting the bloc's 'commitment to dialogue, stability, and a constructive transatlantic partnership.' 'At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,' von der Leyen said in a statement. Trump, as he has in previous letters, warned that his administration would further raise tariffs if the EU attempts to hike its own tariffs on the United States. With the reciprocal tariffs, Trump is dismissing the rules governing world trade. For decades, the United States 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. The Italian government said on Saturday it continues to 'closely monitor' the ongoing trade negotiations between the European Union and the United States, fully supporting the EU Commission's efforts. 'We trust in the goodwill of all stakeholders to reach a fair agreement that can strengthen the West as a whole, given that—particularly in the current scenario—it would make no sense to trigger a trade war between the two sides of the Atlantic,' Premier Giorgia Meloni's office said in a statement. The Mexico tariff, if it goes into effect, could replace the 25% tariffs on Mexican goods that do not comply with the existing U.S.-Mexico-Canada free trade agreement. Trump's letter did not address if goods that comply with the trade agreement would still be exempt from the Mexico tariffs after Aug. 1, as the White House said would be the case with Canada. Trump sent a letter to Canada earlier this week threatening a 35% tariff hike. With Saturday's letters, Trump has now issued tariff conditions on 24 countries and the 27-member European Union. 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 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. imports from the EU topped $553 billion in 2022, according to the Office of the U.S. Trade Representative. Trump on April 2 proposed a 20% tariff for EU goods and then threatened to raise that to 50% after negotiations did not move as fast as he would have liked. The higher tariffs as well as any EU retaliation had been suspended as the two sides negotiate. However the base rate of 10% for most trade partners as well as higher rates of 25% on autos and 50% on steel and aluminum had gone into effect. Douglas Holtz-Eakin, a former Congressional Budget Office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks were not taking place over the past three months. He stressed that nations were instead talking amongst themselves about how to minimize their own exposure to the U.S. economy and Trump. 'They're spending time talking to each other about what the future is going to look like, and we're left out,' Holtz-Eakin said. He added that Trump was using the letters to demand attention, but, 'In the end, these are letters to other countries about taxes he's going to levy on his citizens.' If the tariffs do indeed take effect, the potential impact on Europe could be vast. The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat Europe's biggest exports to the U.S. were pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits. Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more goods from European businesses than the other way around. However, American companies fill some of the gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. Before Trump returned to office, the U.S. and the EU maintained a generally cooperative trade relationship and low tariff levels on both sides. The U.S. rate averaged 1.47% for European goods, while the EU's averaged 1.35% for American products. AP writers Josh Boak in Washington, Angela Charlton in Paris and Dave McHugh in Frankfurt, Germany, and Giada Zampano in Rome contributed reporting. Madhani writes for the Associated Press.
