EU and Mexico criticise Trump’s proposed 30% tariff

JULY 13 – The European Union (EU) and Mexico have expressed disappointment at US President Donald Trump’s risk to impose 30% tariffs on their imports from 1 August.

Mexico criticised what it referred to as Trump’s “unfair deal” and insisted its sovereignty was non-negotiable, whereas the EU’s chief, Ursula von der Leyen threatened to take “proportionate countermeasures”, if wanted. Both mentioned they wished to maintain negotiating with the US.

Trump has warned he’ll impose even larger import taxes if both of the US buying and selling companions determine to retaliate.

This week Trump additionally introduced new tariffs on items from Japan, South Korea, Canada and Brazil from subsequent month.

In the letter despatched on Friday to European Commission President Ursula von der Leyen, Trump wrote: “We have had years to debate our buying and selling relationship with the European Union, and have concluded that we should transfer away from these long-term-large, and protracted, commerce deficits, engendered by your tariff, and non-tariff, insurance policies and commerce limitations.

“Our relationship has been, sadly, removed from reciprocal,” the letter added.

In his letters to the EU and Mexico, Trump warned that if both commerce associate retaliated with import duties of their very own in opposition to the US, he would hit again by elevating tariffs by an identical share over and above the 30%.

In a pre-recorded interview with Fox News which aired on Saturday evening, President Trump mentioned some nations have been “very upset now” however he insisted the tariffs meant “tons of of billions of {dollars}” have been “pouring in”.

The EU has been a frequent goal of Trump’s criticism. On 2 April, he proposed a 20% tariff for items from the bloc, in addition to dozens of different commerce companions. He then threatened to boost the EU import taxes to 50% as commerce talks stalled.

Washington and Brussels had hoped to succeed in an settlement earlier than a deadline of 9 July, however there have been no bulletins on progress.

In 2024, the US commerce deficit with the bloc was $235.6bn (€202bn; £174bn), in line with the workplace of the US commerce consultant.

Von der Leyen mentioned the EU remained prepared “to proceed working in direction of an settlement by Aug 1”.

“We will take all obligatory steps to safeguard EU pursuits, together with the adoption of proportionate countermeasures if required,” von der Leyen mentioned.

“Few economies on the earth match the European Union’s degree of openness and adherence to truthful buying and selling practices,” her assertion added.

France’s President Emmanuel Macron mentioned he was in “very robust disapproval” of Trump’s announcement.

If no settlement is reached, the French chief recommended the EU plan “dashing up the preparation of credible countermeasures”.

Bernd Lange, the pinnacle of the European Parliament’s commerce committee, described Trump’s transfer as “a slap within the face for the negotiations”.

He mentioned that it was “no option to take care of a key buying and selling associate,” including mentioned Brussels ought to enact countermeasures as quickly as Monday.

Some EU leaders referred to as for a take care of Trump. Italian Prime Minister Giorgia Meloni mentioned in an announcement she trusted “a good settlement” might be reached, including: “It would make no sense to set off a commerce warfare between the 2 sides of the Atlantic.”

Dutch Prime Minister Dick Schoof mentioned on social media that the EU “should stay united and resolute” in its intention to succeed in a “mutually useful” take care of the US.

Germany’s Association of the Automotive Industry warned concerning the prospect of rising prices for German carmakers and suppliers, and mentioned it was “regrettable that there’s a risk of an additional escalation of the commerce battle”.

In his letter to Mexico’s chief, Trump mentioned the nation had not performed sufficient to cease North America turning into a “Narco-Trafficking Playground”.

“Mexico has been serving to me safe the border, BUT, what Mexico has performed, is just not sufficient,” Trump added.

Mexican President Claudia Sheinbaum expressed confidence {that a} deal might be reached.

“We imagine, based mostly on what our colleagues mentioned yesterday, that we are going to attain an settlement with the USA and that we are going to, in fact, obtain higher circumstances,” Sheinbaum mentioned on Saturday.

“We are clear on what we will work with the USA and we’re clear on what we can’t,” she added. “And there’s something that’s by no means negotiated, ever, and that’s the sovereignty of our nation.”

Trump’s letter didn’t say if Mexican items traded inside the 2020 United States-Mexico-Canada Agreement can be exempt from the proposed 1 August tariff hikes, because the White House mentioned can be the case with Canada.

Earlier this week, the White House despatched a letter to Canada threatening a 35% tariff.

As of Saturday, the Trump administration has now proposed tariff circumstances on 24 nations and the EU – composed of 27 nations.

On 12 April, White House commerce adviser Peter Navarro set a purpose to safe “90 offers in 90 days”.

So far, the president has introduced the outlines of two such pacts with the United Kingdom and Vietnam as negotiations with others proceed.