President Trump put the European Union and Mexico on notice on Friday that they will begin paying steep tariffs to the United States on August 1.
The President has sent letters to a number of countries in recent days, imposing additional tariffs that are set to be paid starting on August 1.
In letters to both the EU and Mexico, dated July 11, the President told them that they will face 30% tariffs on all imports to the United States.
He threatened both parties that if they decide to retaliate and raise their tariffs, “whatever the number you choose to raise them by, will be added onto the 30% that we charge.”
Trump posted the letters to his Truth Social on Saturday morning.
In his letter to European Commission President Ursula von der Leyen, President Trump emphasized his commitment to maintain a trade relationship “despite having one of our largest Trade Deficits” with the EU.
“We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far,” he said, noting that “there will be no Tariff if The European Union, or companies within the EU, decide to build or manufacture product within the United States.”
In his letter to Mexican President Claudia Sheinbaum, the President highlighted the ongoing threat posed by Mexican drug cartels, crediting America’s fentanyl crisis to Mexico’s “failure to stop the Cartels.”
“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground. Obviously, I cannot let that happen!” Trump said.
“If Mexico is successful in challenging the Cartels and stopping the flow of Fentanyl, we will consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country.
Per NBC:
Trump has spent the past week bringing his trade war back to a roaring boil. He kicked it off by issuing dozens of letters announcing unilateral tariffs, then said he planned to impose 50% duties on copper goods, sending prices of the raw metal to all-time highs. Late Thursday, he announced he would apply a blanket tariff of up to 20% on all imports, as well as a 35% tariff on some, and perhaps all, Canadian importsstarting next month.
The letters come as the many trade deals that Trump administration officials had said would be signed have failed to materialize, leaving Trump with little to show for weeks of negotiations.
While Mexico was spared from Trump’s so-called “Liberation Day” tariff rollout on April 2, the 30% rate for the E.U. is 10% higher than what the president said he would apply to America’s largest trading partner in April but lower than his mid-May threat of 50%.
The 27-member European Union is the United States’ largest trading partner — its $605 billion worth of imports into the U.S. surpassing Mexico, Canada and even China. The most valuable category was drugs and pharmaceuticals, followed by autos and aircraft and other heavy machinery. Trump has already threatened to impose a 200% tariff on any drugs imported into the U.S., though it would not be applied for at least 18 months.
Ursula von der Leyen reportedly said in a statement that “few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” and that the EU will impose retaliatory tariffs “if required.”
This is a developing story.
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