Berliner Boersenzeitung - Trump says Mexico, EU to face 30% tariff from Aug 1

Both sets of duties would take effect August 1, Trump said in separate letters posted to his Truth Social platform, citing Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the EU respectively.

Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.

But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements. So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China.

The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted.

"Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough," Trump said in his letter. "Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States."

Canada earlier received a similar letter setting out 35 percent tariffs on its goods. A US official earlier told AFP that the USMCA exemption was similarly expected to remain for Canada.

The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April, as negotiations with the bloc continue.

The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to August 1 just days before the elevated rates were due to take effect.

Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each.

Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies, and the latest letter suggests talks will carry on.

The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminum imports earlier this year, and they are suspended until July 14.

European officials have not made any move to extend the suspension but could do it quickly if needed.

(T.Renner--BBZ)