Trump threatens EU, Mexico with 30% tariff rate
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Trump Threatens 20%–50% Tariffs on 23 Nations Including EU, Mexico: Here’s What It Means for Global Trade
US President Donald Trump has reignited global trade tensions with a dramatic new move. He has sent formal letters to 23 trading partners this week, warning of blanket import tariffs. The list includes some of America’s largest trade partners, accounting for more than half of its global import volume. Trump has justified the move on two main grounds:Trade Deficits – He argues these nations exploit the US by running large surpluses. Fentanyl Concerns – Specifically pointing at Mexico and China, Trump claims these countries are not doing enough to curb fentanyl trafficking, a charge that has drawn scepticism from experts. With the August 1 deadline fast approaching, nations are scrambling to negotiate bespoke trade terms with the Trump administration. The outcomes will define the next chapter in global trade relations — cooperation or confrontation, experts say.
US President Donald Trump has reignited global trade tensions with a dramatic new move — sending formal letters to 23 trading partners this week, warning of blanket import tariffs ranging between 20 and 50 per cent unless new bilateral deals are negotiated by August 1.
Which Countries Are on the List? The targeted nations include:
European Union
Mexico
Canada
Japan
Brazil
South Korea
South Africa
Indonesia
Thailand
Malaysia
Argentina
Turkey
…and others not yet disclosed officially.
This list includes some of America’s largest trade partners, accounting for more than half of its global import volume.
What’s at Stake? Trump’s proposal includes:
A 30% general import tariff on goods from these countries
An additional 50% duty on copper imports
No rollback of existing tariffs like:
50% on steel and aluminium
25% on autos
Countries that do not agree to new trade terms by August 1 risk these tariffs becoming permanent.
Why the New Tariffs Now? Trump has justified the move on two main grounds:
Trade Deficits – He argues these nations exploit the US by running large surpluses.
Fentanyl Concerns – Specifically pointing at Mexico and China, Trump claims these countries are not doing enough to curb fentanyl trafficking, a charge that has drawn scepticism from experts.
“Mexico still has not stopped the cartels… trying to turn all of North America into a narco-trafficking playground,” Trump wrote on Truth Social.
Global Reaction: Strong Condemnation Mexico: Mexican President Claudia Sheinbaum expressed willingness to negotiate but made clear that national sovereignty is non-negotiable. “I’ve always said that in these cases, what you have to do is keep a cool head to face any problem,” she said. European Union:
EU President Ursula von der Leyen warned that a 30% tariff would:
Disrupt transatlantic supply chains
Hurt businesses, consumers, and patients
Undermine EU–US strategic ties
MEP Bernd Lange, chair of the European Parliament’s trade committee, called it “a slap in the face for negotiations” and pushed for immediate counter-measures.
Who Has a Deal With Trump? So far, only a few countries have secured provisional trade arrangements with the US under Trump:
United Kingdom
China
Vietnam
The EU had been pursuing a broader agreement but is now considering a scaled-back framework deal, similar to the UK pact.
Fentanyl: Trump’s Political Leverage Despite claiming fentanyl smuggling justifies higher tariffs, US data shows:
Only 0.2% of fentanyl seizures occur at the Canada–US border
The bulk (over 90%) is smuggled from Mexico
China remains the main source of precursor chemicals
Even so, Mexico’s proposed tariff rate (30%) is below Canada’s (35%), suggesting a selective application of Trump’s trade policies.
How Will This Impact Global Trade? Analysts warn that this aggressive trade posture could:
Trigger retaliatory tariffs
Hurt multinational supply chains
Increase inflation in the US
Damage bilateral relations with long-standing allies
US Treasury figures reveal that customs duty collections crossed $100 billion in the fiscal year up to June 2025 — revenue that comes largely at the expense of importers and consumers.
With the August 1 deadline fast approaching, nations are scrambling to negotiate bespoke trade terms with the Trump administration. The outcomes will define the next chapter in global trade relations — cooperation or confrontation.
EU, Mexico Express Disappointment Over 50% Tariffs Threat
Mexico criticised what it called Trump’s “unfair deal’ and insisted its sovereignty was non-negotiable. The EU’S chief, Ursula von der Leyen threatened to take “proportionate countermeasures”, if needed. Both said they wanted to keep negotiating with the US. Trump has warned he will impose even higher import taxes if either of the US trading partners decide to retaliate against him. The US trade deficit with the bloc was $235.6bn (€202bn; £174bn) in 2024. Washington and Brussels had hoped to reach an agreement before a deadline of 9 July, but there have been no announcements on progress. Trump said some countries were “very upset now’ but he insisted the tariffs meant “hundreds of billions of dollars” were ‘pouring in’ in a pre-recorded interview with Fox News. Some EU leaders called for a deal with Trump. Italian Prime Minister Giorgia Meloni said in a statement she trusted “a fair agreement” could be reached.
The European Union (EU) and Mexico have expressed disappointment at US President Donald Trump’s threat to impose 30% tariffs on their imports from 1 August.
Mexico criticised what it called Trump’s “unfair deal” and insisted its sovereignty was non-negotiable, while the EU’s chief, Ursula von der Leyen threatened to take “proportionate countermeasures”, if needed. Both said they wanted to keep negotiating with the US.
Trump has warned he will impose even higher import taxes if either of the US trading partners decide to retaliate.
This week Trump also announced new tariffs on goods from Japan, South Korea, Canada and Brazil from next month.
In the letter sent on Friday to European Commission President Ursula von der Leyen, Trump wrote: “We have had years to discuss our trading relationship with the European Union, and have concluded that we must move away from these long-term-large, and persistent, trade deficits, engendered by your tariff, and non-tariff, policies and trade barriers.
In his letters to the EU and Mexico, Trump warned that if either trade partner retaliated with import duties of their own against the US, he would hit back by raising tariffs by a similar percentage over and above the 30%.
In a pre-recorded interview with Fox News which aired on Saturday night, President Trump said some countries were “very upset now” but he insisted the tariffs meant “hundreds of billions of dollars” were “pouring in”.
The EU has been a frequent target of Trump’s criticism. On 2 April, he proposed a 20% tariff for goods from the bloc, as well as dozens of other trade partners. He then threatened to raise the EU import taxes to 50% as trade talks stalled.
Washington and Brussels had hoped to reach an agreement before a deadline of 9 July, but there have been no announcements on progress.
In 2024, the US trade deficit with the bloc was $235.6bn (€202bn; £174bn), according to the office of the US trade representative.
Von der Leyen said the EU remained ready “to continue working towards an agreement by Aug 1”.
France’s President Emmanuel Macron said he was in “very strong disapproval” of Trump’s announcement.
If no agreement is reached, the French leader suggested the EU plan “speeding up the preparation of credible countermeasures”.
Bernd Lange, the head of the European Parliament’s trade committee, described Trump’s move as “a slap in the face for the negotiations”.
He said that it was “no way to deal with a key trading partner,” adding said Brussels should enact countermeasures as soon as Monday.
Some EU leaders called for a deal with Trump. Italian Prime Minister Giorgia Meloni said in a statement she trusted “a fair agreement” could be reached, adding: “It would make no sense to trigger a trade war between the two sides of the Atlantic.”
Dutch Prime Minister Dick Schoof said on social media that the EU “must remain united and resolute” in its aim to reach a “mutually beneficial” deal with the US.
Germany’s Association of the Automotive Industry warned about the prospect of rising costs for German carmakers and suppliers, and said it was “regrettable that there is a threat of a further escalation of the trade conflict”.
EPA Mexican President Claudia Sheinbaum speaks at a press conference at the National Palace in Mexico CityEPA
Mexican President Claudia Sheinbaum is still confident of reaching a deal with Trump
In his letter to Mexico’s leader, Trump said the country had not done enough to stop North America becoming a “Narco-Trafficking Playground”.
Mexican President Claudia Sheinbaum expressed confidence that a deal could be reached.
Trump’s letter did not say if Mexican goods traded within the 2020 United States-Mexico-Canada Agreement would be exempt from the proposed 1 August tariff hikes, as the White House said would be the case with Canada.
Earlier this week, the White House sent a letter to Canada threatening a 35% tariff.
As of Saturday, the Trump administration has now proposed tariff conditions on 24 countries and the EU – composed of 27 countries.
On 12 April, White House trade adviser Peter Navarro set a goal to secure “90 deals in 90 days”.
So far, the president has announced the outlines of two such pacts with the United Kingdom and Vietnam as negotiations with others continue.
Trump threatens 30% tariffs on EU and Mexico, escalating trade tensions
US President Donald Trump has threatened to slap 30 per cent tariffs on imports from both the European Union and Mexico starting August 1. Both the EU and Mexico quickly pushed back against the threat, describing the proposed tariffs as unfair and disruptive to established supply chains. The dramatic move marks an escalation in what has been a rocky year of negotiations between the US and some of its largest trading partners. In the past week, his administration sent similar letters to 23 other trading partners—including Canada, Japan and Brazil—proposing blanket tariff rates from 20 per cent up to 50 per cent. Some European allies have even begun exploring alternatives to US-made weapons systems in response to Washington’s latest hardball tactics to respond to the tariff threat. But there is real concern among business leaders and trade experts that a new wave of tariffs could undermine supply chains, raise costs for consumers, and prompt retaliatory measures. According to US customs data cited by Reuters, customs revenue topped $100 billion in the federal fiscal year of June.
As per Reuters, the warning was delivered in letters Trump posted on his Truth Social platform on Saturday, addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum.
The dramatic move marks an escalation in what has been a rocky year of negotiations between the US and some of its largest trading partners. Trump, who has previously relied on tariffs to extract trade concessions, appears determined to ramp up pressure again.
EU, Mexico call tariffs unfair and disruptive
Both the European Union and Mexico quickly pushed back against the threat, describing the proposed 30 per cent tariffs as unfair and disruptive to established supply chains.
European Commission President Ursula von der Leyen warned that the move would damage essential transatlantic commerce. “Such tariffs would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” she said, as quoted by Reuters.
She added the EU would continue to seek a negotiated settlement but would also “take all necessary steps to safeguard EU interests,” including considering proportionate countermeasures.
Mexico’s President Claudia Sheinbaum also struck a defiant but measured tone, saying she believed an agreement could still be reached. “I’ve always said that in these cases, what you have to do is keep a cool head,” she told local media, reaffirming that Mexico would defend its sovereignty in negotiations.
Broader tariff offensive
Reuters reported that Trump didn’t stop with the EU and Mexico. In the past week, his administration sent similar letters to 23 other trading partners—including Canada, Japan and Brazil—proposing blanket tariff rates from 20 per cent up to 50 per cent.
These new tariff threats come on top of existing sectoral tariffs: the US already charges 50 per cent on steel and aluminium imports and 25 per cent on autos. Trump’s letter clarified the new 30 per cent rate was “separate” from these existing measures.
While the administration set an August 1 deadline for the threatened tariffs to take effect, Trump suggested countries still had time to negotiate to avoid them. Analysts noted he has a history of using aggressive tariff threats as leverage before pulling back.
Politics and trade deficits
The justification for the tariff hikes has varied. In his letter to the EU, Trump demanded that Europe remove its own tariffs to help reduce the US trade deficit. “The European Union will allow complete, open market access to the United States, with no tariff being charged to us,” he wrote, arguing for reciprocal treatment.
Mexico’s letter singled out the cross-border drug trade. Trump criticised Mexico’s efforts to stop cartels smuggling fentanyl, blaming the country for failing to prevent North America from becoming what he described as a “narco-trafficking playground.”
Reuters noted that while Trump’s letter to Mexico proposed a 30 per cent tariff rate, the threat to Canada was even steeper at 35 per cent, despite data showing fentanyl seizures at the Canadian border are minimal compared to the US-Mexico border.
Markets watching closely
The new tariff threats come despite the US stock market recently hitting record highs. Analysts told Reuters that Trump is betting on the resilience of the American economy to weather any short-term turbulence caused by a trade war.
But there is real concern among business leaders and trade experts that a new wave of tariffs could undermine supply chains, raise costs for consumers, and prompt retaliatory measures.
Bernd Lange, head of the European Parliament’s trade committee, told Reuters that the EU should consider countermeasures as soon as Monday, calling Trump’s approach “a slap in the face for the negotiations.”
Jacob Funk Kirkegaard, a senior fellow at the Brussels-based think tank Bruegel, warned the move risked triggering a tariff spiral reminiscent of the trade war with China. “US and Chinese tariffs went up together and they came back down again. Not all the way down, but still down together,” he said.
Billions in new revenue, but diplomatic strain
Despite the diplomatic fallout, the Trump administration’s aggressive trade policy has delivered new customs revenue. According to US Treasury data cited by Reuters, customs duties revenue topped $100 billion in the federal fiscal year through June.
However, it has also strained relations with close allies. Japan’s Prime Minister Shigeru Ishiba recently said Tokyo needed to reduce its dependence on the US. Some European allies have even begun exploring alternatives to US-made weapons systems in response to Washington’s hardball trade tactics.
Trump’s latest tariff threats underscore his willingness to play tough on trade as he seeks leverage for new deals. But with an August 1 deadline looming and negotiations with partners still ongoing, the world will be watching to see whether this is genuine policy or another high-stakes negotiating tactic.
Vietnam’s 20% tariff deal with Trump lacks full details and a final agreement text
Vietnam was one of only two countries to strike a last-minute agreement before the deadline, avoiding the initial 46% tariff threat. Trump publicly announced the new blanket rate at 20%. Still, no full agreement has been released, and neither side has explained the fine print. The issue is not hypothetical. Vietnam’s garment industry depends on China for about 70% of its raw materials, including zippers, cotton yarn, and elastic. Nearly one-third of all Vietnamese exports go to the U.S., and its 2024 trade surplus with America hit $123 billion, making it the third-largest behind China and Mexico. But with no full text, no product list, and no guarantee of better terms, no one can guarantee the outcome of the trade deal, experts say. The impact of the 40% clause depends on how far the Trump administration takes its definition. If it targets blatant cases like fake “Made in Vietnam” labeling, the damage may be limited. But if it’s based on foreign material thresholds, then Vietnamese exports could take a serious hit.
Vietnam was one of only two countries to strike a last-minute agreement before the deadline, avoiding the initial 46% tariff threat. Trump publicly announced the new blanket rate at 20%. Still, no full agreement has been released, and neither side has explained the fine print, leaving businesses without answers just weeks ahead of an August 1 reset.
Thanh Cong Garment, a key Vietnamese supplier for companies like Adidas, Columbia, and Calvin Klein, expected relief. Instead, it’s stuck in limbo. Company chair Tran Nhu Tung said there’s no certainty whether the 20% tariff will apply to all goods or increase for products made with Chinese materials.
“For the products that [have] materials from China but manufactured in Vietnam, what is the tariff to export to the US? 20 per cent or 30 per cent or 35 per cent?” Tung asked. “We need to wait.” The issue is not hypothetical. Vietnam’s garment industry depends on China for about 70% of its raw materials, including zippers, cotton yarn, and elastic.
Unclear transshipment clause triggers panic in factories
A clause in the Trump deal threatens to apply a 40% tariff on “transshipped” goods. But no one has defined what transshipment means. The Vietnamese government hasn’t offered clarification, and the U.S. hasn’t released any details either. This has raised fears among manufacturers that goods containing Chinese components—even if legally assembled in Vietnam—will get hit with heavier tariffs.
Rich McClellan, founder of RMAC Advisory, which advises both companies and Vietnam’s government, said, “There is a sigh of relief that at least we know what the answer is for Vietnam . . . but there is still quite a lot of uncertainty in the agreement that exists right now.” He called the transshipment clause “the most ambiguous and most potentially risky portion of this agreement.”
Economist Michael Wan from MUFG said the impact of the 40% clause depends on how far the Trump administration takes its definition. If it targets blatant cases like fake “Made in Vietnam” labeling, the damage may be limited. But if it’s based on foreign material thresholds, then Vietnamese exports could take a serious hit.
Vietnam’s manufacturing sector has been built around serving U.S. demand. Nearly one-third of all Vietnamese exports go to the U.S., and its 2024 trade surplus with America hit $123 billion, making it the third-largest behind China and Mexico.
Now, that success is being viewed with suspicion in Washington, especially since almost one in three new manufacturing projects in Vietnam last year were funded by Chinese investors.
Hanoi scrambles for clarity before August deadline
Prime Minister Pham Minh Chinh met with the U.S.-Asean Business Council in Hanoi on Friday to push for clearer terms. The group represents companies like Apple, Amazon, and Boeing. Pham asked the council to support Vietnam’s efforts to finalize a full agreement, lower the tariff rate, and prevent actions that damage trade relations.
Trump’s public announcement caught Vietnamese leaders off guard. Pham said the countries had agreed on a framework but warned that detailed rates for specific products were still missing. He also asked U.S. companies to push the White House to recognize Vietnam as a market economy, which would help reduce pressure from trade defense tools.
As of now, investors haven’t pulled back. Foreign direct investment in Vietnam rose almost 30% to $21.5 billion in the first half of the year. But U.S. retailers are already sounding alarms. Steve Greenspon, founder of Honey-Can-Do, said:
“A 20 per cent tariff will result in higher prices and inflation on goods. This will certainly lead to reduced demand for goods, hurting American businesses and jobs.”
Thanh Cong Garment has already seen a drop of 15–20% in U.S. orders for the third quarter, due to a shipping rush before the July deadline and the wait for clarification.
Vietnam’s early move may have helped it avoid the worst threats from Washington—for now. But with no full text, no product list, and no guarantee of better terms than its neighbors, the final outcome is still unknown.
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Trump threatens to ‘run’ New York City if Mamdani becomes mayor
President Donald Trump has threatened to “run” New York City if its voters choose Zohran Mamdani as their next mayor. Trump claimed, “We have tremendous power at the White House to run places when we have to,” and warned that if New Yorkers elect what he called a “communist” mayor, he might step in and take control. Trump’s target is not a communist, he’s a democratic socialist aligned with the politics of Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez. Trump has tried to end birthright citizenship by executive order, used obscure wartime powers to redirect funds for his border wall.
US President Donald Trump has threatened to “run” New York City if its voters choose Zohran Mamdani, an muslim man of Indian descent, and champion of the city’s progressive movement, as their next mayor.
Trump claimed, “We have tremendous power at the White House to run places when we have to,” and warned that if New Yorkers elect what he called a “communist” mayor, he might step in and take control, CNN says.
Trump’s target, Zohran Mamdani, is not a communist, he’s a democratic socialist aligned with the politics of Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez.
For Trump, Mamdani is a convenient villain, the perfect figure to depict as proof that the Democratic Party has fallen to “radical leftists.” Trump escalated his rhetoric, calling Mamdani “a man who’s not very capable, other than he’s got a good line of bullsh*t,” and even floated the baseless suggestion that Mamdani, a naturalized US citizen, might be in the country illegally, echoing his notorious “birther” lies about President Obama.
Trump’s talk of taking over New York City is a direct threat to millions of voters that could upend the American federal system.
According to legal experts, there’s no scenario where the president can simply strip a city of its elected government because he dislikes its policies. “There’s no emergency power that allows the president to take over a city,” says Elizabeth Goitein, a specialist in presidential powers at the Brennan Center for Justice.
Trump has floated using the Insurrection Act, an old law allowing federal troops to restore order during unrest, but there’s no precedent for using it just because a city elects a mayor the president opposes, CNN says.
NYU Professor Domingo Morel points out that Trump’s message to New Yorkers is essentially: “Whatever you say doesn’t matter; we’ll take away your right to govern yourselves if we don’t like how you vote.”
While Trump’s threats may be more bluster than reality, his record shows he has to be taken seriously. He has tried to end birthright citizenship by executive order, used obscure wartime powers to redirect funds for his border wall, and pressured states and cities to align with his immigration crackdown.
Mamdani, meanwhile, continues to represent a growing movement demanding bold change in housing, climate action, and economic equality, exactly the issues Trump’s base loves to demonize as “socialism.”
Since being elected to the New York State Assembly to the shock of much of the US political elite, Mamdani has become a vocal champion for housing justice, tenants’ rights, and expanding social programs. He’s known for pushing for stronger rent protections and a wealth tax on billionaires, which has earned him a loyal grassroots following and made him a symbol of the city’s leftward shift.