Trump escalates trade war and announces 30% tariffs on the EU

Barcelona / BrusselsThe trade war of the United States against the European Union has escalated again. US President Donald Trump announced this Saturday a 30% tariff on the EU and Mexico, which will take effect on August 1, as he himself communicated in a message on his social network, Truth Social. He announced this to the President of the European Commission, Ursula von der Leyen, through a letter that he also made public and in which he concludes that the trade relationship between the two blocs is "far from reciprocal."

However, Brussels maintains a diplomatic tone and insists that it wants to reach an agreement with the White House. In a statement issued this afternoon, the European Commission assures that it "remains prepared to work towards an agreement before August 1," although it warns that, "at the same time," it is willing "to take all necessary steps to safeguard the interests of the European Union, including the adoption of proportionate countermeasures," at least for now.

The EU executive also warns that the imposition of these customs duties could lead to a "fundamental disruption in supply chains," which would be "detrimental to businesses and consumers" in both countries. However, this Monday, the member states will meet in Brussels for an EU Trade Council, where the partners will discuss how to respond to Trump's threats and the tariff escalation. According to a spokeswoman, Brussels was already aware of Trump's intentions since Friday.

The European Commission and the member states will also have to decide whether to apply the countermeasures that were frozen until next Tuesday, pending the White House's next moves. Among other things, if Trump does not change his mind again, Brussels has prepared an increase in tariffs of up to 25% on more than 1,700 US products, from eggs to mattresses, diamonds and clothing.

The new tax would apply to products imported by the United States from the European Union, in addition to any sector-specific tariffs already in place. "Please understand that this 30% rate is far less than what is needed to eliminate the disparity in the trade deficit we have with the EU," Trump tells von der Leyen in the letter. In the face of possible retaliation by the EU, the US leader has already warned that the US will respond with the same increase, which would be added to the 30%. "This deficit is a major threat to our economy and even to our national security," he insisted.

However, the Republican president also reminded von der Leyen that there will be no tariffs if companies in the region decide to manufacture directly within the US. "In fact, we will do everything possible to obtain approval quickly, professionally, and routinely; in other words, within a matter of weeks," Trump warns. Since the start of the trade war, this has always been one of the objectives of their tariff threats: forcing European companies to produce in their own countries to pay fewer taxes and keep their business across the Atlantic profitable.

The President of the European Council, António Costa, also defended this Saturday the EU's willingness to remain "firm, united, and ready" to protect its interests and "build strong trade partnerships around the world," following the US president's announcement. He also added that tariffs "fuel inflation, create uncertainty, and hinder economic growth." For his part, French President Emmanuel Macron asserted that he "fully" supports the European Commission in "intensifying" its negotiations with the United States, although he warned that Brussels must prepare "credible responses" to this threat.

Sources from the Spanish Ministry of Economy have lamented this new US tariff threat and reiterated their support for the European Commission "to continue working constructively toward a mutually satisfactory negotiated solution before August 1." The department, led by Carlos Cuerpo, called for calm among Spanish companies and recalled the measures already in place to mitigate the economic impact they may suffer from this latest escalation in the trade conflict.

Punishment for Mexico for the fentanyl crisis

Trump also published on Truth Social the letter he sent to Mexican President Claudia Sheinbaum, in which he argues that despite the "strong relationship" between the two economies, he has decided to impose these tariffs in response to the "fentanyl crisis." The leader has accused Mexico of failing "to stop the cartels, which are made up of the most despicable people to ever set foot on this Earth." Thus, despite admitting that Mexico has helped him strengthen border security, he believes that Sheinbaum's administration "has not done enough." "Mexico has not yet stopped the cartels that are trying to turn North America into a playground for drug trafficking. Obviously, I cannot let this happen," Trump exclaimed in the letter.

In Mexico's case, the 30% tariffs will also be imposed on all imports and will be added to the sector-specific tariffs. As he has done with the European Union, Trump has encouraged Mexican companies to move their production to the US to avoid paying more for their products and has threatened more tariffs if the Sheinbaum administration implements countermeasures. "The flow of fentanyl is not the only challenge we have with Mexico, which has many tariffs and trade barriers, causing unsustainable deficits against the United States," the letter states. These new tariffs, it adds, will be increased or reduced depending on how the relationship between the two countries evolves and whether Mexico manages to stop the entry of fentanyl across its border.

Mexican Economy Minister Marcelo Ebrard, who has led negotiations with Washington during this trade offensive, responded in a social media post that his team already met with US officials on Friday. These officials warned them of a "profound change in US trade policy" and informed them that the Trump administration would send letters to all world leaders announcing new tariffs. "We said at the negotiating table that it was an unfair measure and that we didn't agree with it," he complained.

This week, Trump had already announced tariffs on imports from Japan, South Korea, Canada, and Brazil, as well as a general 50% tariff on all copper purchases abroad.