President Donald Trump announced on Saturday that the United States will impose a 30% tariff on imports from the European Union and Mexico, effective August 1.
Fresh Trump Tariffs Target Major US Trading Partners
The announcement was made through letters Trump posted on his social media account, addressing two of America’s largest trade partners. In his letter to Mexico’s president, Trump recognised the country’s efforts in helping reduce the flow of undocumented migrants and fentanyl into the US.
Mexico Praised but Criticised on Border Issues
The US president, however, stressed that the country has not done enough to stop North America from turning into what he termed a ‘Narco-Trafficking Playground’. “Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump wrote in a post while expressing frustration.
The new round of tariffs, which are expected to affect a wide range of commodities, would likley result in price hikes for consumers and businesses in the US and abroad.
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EU Trade Deficit Called a National Security Threat
In the letter addressed to the European Union, Trump criticised what he sees as long-standing trade imbalances. “We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers” he said, adding, “Our relationship has been, unfortunately, far from Reciprocal.”
The European bloc is America’s largest trading partner, with imports topping an estimated total of over $553 billion in 2022, according to a report published by The Associated Press on Saturday. Earlier, the European Union’s chief trade negotiator Maroš Šefčovič suggested that a deal to avoid higher tariffs could be reached soon.
Breaking with Trade Norms
Trump’s latest move disrupts decades of international trade agreements that limited tariff rates under the “most favoured nation” principle, where countries could not discriminate between trading partners.
Experts React: Mixed Views on Impact
“They are spending time talking to each other about what the future is going to look like, and we are left out,” the news agency quoted Douglas Holtz-Eakin, former director of the Congressional Budget Office, as saying.
Holtz-Eakin further suggested that Trump’s tariff letters are partly a tactic to command attention while adding, “In the end, these are letters to other countries about taxes he is going to levy on his citizens.”
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