EU, Mexico blast latest U.S. tariff hikes as unfair — vow to continue talks before deadline

EU, Mexico blast latest U.S. tariff hikes as unfair — vow to continue talks before deadline

President Donald Trump has intensified the ongoing trade war by threatening to impose a 30% tariff on imports from the European Union and Mexico, starting on August 1. The move, announced in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, has drawn strong condemnation from both sides, who have vowed to continue negotiations to avoid the tariffs [1].

The EU and Mexico are among the largest trading partners of the United States. The EU, which has been working towards a comprehensive trade agreement with the U.S., responded by calling the tariffs "unfair and disruptive," stating that they would "disrupt essential transatlantic supply chains." The bloc has pledged to continue working towards a trade agreement but is also prepared to take "all necessary steps to safeguard EU interests," including the adoption of proportionate countermeasures [1].

Mexico's economy ministry expressed similar sentiments, stating that the tariffs were "unfair treatment" and that the country had not agreed to them. Mexico, which has been helping the U.S. secure its border, has been facing criticism from Trump for not doing enough to stop the flow of fentanyl and undocumented migrants [1].

The U.S. president has been using the 90-day delay to strike new trade deals, but so far, only framework agreements with Britain, China, and Vietnam have been secured. The tariffs, if implemented, would strain diplomatic relationships and potentially lead to retaliatory measures from the EU and Mexico [1].

The move comes as the stock market has been hitting record highs and the U.S. economy remains resilient. However, the aggressive trade posture has raised concerns among investors and financial professionals. The tariffs could disrupt global supply chains and potentially lead to higher prices for consumers [1].

The EU and Mexico have until August 1 to negotiate agreements that could lower the threatened tariffs. The spate of letters from Trump shows a return to his aggressive trade stance, which sent markets tumbling earlier this year before the White House delayed implementation [1].

References:
[1] https://www.marketscreener.com/news/latest/Trump-intensifies-trade-war-with-threat-of-30-tariffs-on-EU-Mexico-50495778/
[2] https://www.npr.org/2025/07/12/nx-s1-5465577/trump-30-tariffs-eu-mexico