U.S. President Donald Trump has intensified the trade war yet again, by threatening to impose 30% tariffs on imports from the European Union and Mexico, beginning August 1, 2025. This latest rate is “separate from all sectoral tariffs,” indicating 50% levies on steel and aluminum imports and a 25% tariff on auto imports would remain. This latest escalation follows failed negotiations with these major U.S. trading partners, and is part of a broader tariff campaign targeting 25 trading partners with rates ranging from 20% to 50%.
Both the EU and Mexico have called the tariffs unfair and disruptive, with EU Commission President Ursula von der Leyen warning they “would disrupt essential transatlantic supply chains” and is considering countermeasures.
Tariffs have generated tens of billions of dollars a month for the U.S. government but have also strained diplomatic relationships geopolitically.
SOURCE: Reuters
