WASHINGTON — US President Donald Trump announced on July 12 that the United States will impose a 30 per cent tariff on imports from Mexico and the European Union starting August 1, following the collapse of negotiations to reach a broader trade agreement with the key allies.
The tariffs were confirmed in separate letters posted on Trump’s Truth Social account and come just days after the administration announced a new wave of tariffs on other major trading partners, including Japan, South Korea, Canada, and Brazil. A separate 50 per cent tariff on copper imports was also unveiled earlier this week.
The European Union, which had been seeking a comprehensive trade deal with the US covering industrial goods and aiming to eliminate tariffs on both sides, had braced for the move amid increasingly fraught discussions.
Hopes for a broader agreement faded as internal EU divisions surfaced. While Germany has pushed for a swift compromise to protect its industrial base, France and other members have urged EU negotiators to resist pressure to accept what they view as a one-sided deal on Washington’s terms.
In response, European Commission President Ursula von der Leyen issued a firm statement vowing to defend the bloc’s interests. “Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she said. “We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Despite the setback, von der Leyen said Brussels remains open to dialogue and “ready to continue working towards an agreement by August 1.”
The new tariffs are part of Trump’s broader push to reshape global trade arrangements. Since returning to the White House, his administration has ramped up tariff measures, generating tens of billions of dollars in new revenue. According to US Treasury data released on July 11, customs duties surged past US$100 billion (S$128 billion) in the federal fiscal year through June.
The escalation in trade tensions marks a turning point in transatlantic economic relations, with potential ripple effects for global supply chains, industrial output, and geopolitical alliances.