Trump Threatens 30% Tariffs on Mexico and the EU

Reuters’ Jarrett Renshaw, Bhargav Acharya and Cassandra Garrison reported that “President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.”

“In an escalation of a trade war that has angered U.S. allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site on Saturday,” Renshaw, Acharya and Garrison reported. “The EU and Mexico, both among the largest U.S. trading partners responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the U.S. for a broader trade deal before the deadline.”

BREAKING: President Trump announces 30% tariff on the European Union and Mexico.

Trump says if they retaliate, these tariffs will be raised by the same amount as the retaliation. pic.twitter.com/JQ1HsLeseO

— The Kobeissi Letter (@KobeissiLetter) July 12, 2025

“…Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper,” Renshaw, Acharya and Garrison reported. “The U.S. president said the 30% rate was ‘separate from all sectoral tariffs,’ indicating 50% levies on steel and aluminum imports and a 25% tariff on auto imports would remain.

“The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs,” Renshaw, Acharya and Garrison reported. “Some investors and economists have also noted Trump’s pattern of backing off his tariff threats.”

Mexico Tariffs, in Particular, Could Affect Ag Trade

NBC News’ Steve Kopack and Rob Wile reported that Mexico “is another one of the United States’ most important trading partners, with more than $505 billion worth of goods imported by American consumers and companies in 2024. Mexico made up 69% of U.S. vegetable imports and 51% of U.S. fresh fruit imports in recent years, according to U.S. Agriculture Department data. With short shelf lives, produce could see price hikes faster than other goods.”

When tariffs on Mexico were first announced back in the spring, the New York Times’ Simon Romero reported that Mexico has “grown into the most important market for U.S. food and agricultural exports, ahead of both Canada and China,” Romero reported. “That could allow Mexico to target certain products from the United States with tariffs. In 2018, Mexican negotiators strategically placed tariffs on products from states and regions with strong ties to the first Trump administration, including apples, bourbon, cheese, cranberries, pork and potatoes.”

“When it comes to agriculture, experts say Mexico could also have the potential to pivot, albeit slowly, to other markets. Even as Mexico has relied on the United States, Mexico has increasingly sought to expand trade with countries in Asia and Latin America,” Romero reported. “Mexico has also strengthened ties with the European Union, which is the second-largest market for Mexican exports after the United States, and imports products like tequila and beer, coffee, fruit juice, avocados and berries.”

“In addition to tariffs, Mexico could eliminate preferences for imported grains and vegetable oils from the United States, potentially opting to import such products from Latin American agricultural powerhouses like Brazil or Argentina,” Romero reported. “But that could require major changes to infrastructure like ports and railways, something hard to do in the near term.”

Mexico, EU Say They’re Still Pursuing Trade Negotiations

Politico’s Megan Messerly, Doug Palmer and Nicole Markus reported that “European leaders on Saturday responded (to Trump’s tariff letter) by saying they were still interested in negotiations — but pointedly did not rule out retaliation if it became necessary.”

“European Commission President Ursula von der Leyen posted on X that while Europe would continue working toward an agreement with the U.S. before the Aug. 1 deadline, they would also continue to ‘safeguard EU interests on the basis of proportionate countermeasures,'” Messerly, Palmer and Markus reported.

“The Mexican government also put out a statement Saturday indicating that a delegation met with U.S. officials on Friday to establish a working group to address ‘the main issues in the relationship,'” Messerly, Palmer and Markus reported. “The statement said Mexican negotiators were aware a letter would be coming and that while they believed it was ‘unfair treatment and that we disagreed’ with the strategy, ‘Mexico has begun negotiations.'”