Trump Imposes 30% Tariffs on EU and Mexico, Effective August 1
Updated on
Published on
President Trump posted letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum late Saturday, confirming that every product entering the U.S. from the EU and Mexico will face a 30 % tariff beginning August 1, with promised “like-for-like” retaliation if either partner raises its own barriers.
The announcement sent the S&P 500 down nearly one percent in pre-market futures, hammered auto stocks on both sides of the Atlantic, and pushed the peso to a four-month low. EU officials called the move “economic aggression,” while Mexico’s economy minister vowed to convene an emergency meeting under USMCA dispute-resolution rules.
Both Brussels and Mexico City signaled they will pursue negotiations up to the midnight deadline, but also drafted provisional counter-tariffs on U.S. agriculture, bourbon, and industrial goods should talks fail. Analysts warn the sweeping levy could add more than $60 billion in annual costs for U.S. consumers and trigger supply-chain disruptions ahead of the holiday retail season.
