Trump intensifies trade war with 30pc tariffs on EU and Mexico

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United States President Donald Trump on Saturday imposed a 30 per cent tariff on imports from Mexico and the European Union beginning on August 1 after weeks of negotiations with the key trading allies failed to reach a more comprehensive trade deal.

The fresh tariffs were announced in separate letters posted on Truth Social on Saturday.

Earlier this week, Trump issued new tariff announcements for a number of countries, including Japan, South Korea, Canada and Brazil, as well as a 50pc tariff on copper.

The EU had hoped to reach a comprehensive trade agreement with the US for the 27-country bloc.

It had been bracing for the letter from Trump outlining his planned duties on the United States’ largest trade and investment partner after a broadening of his tariff war in recent days.

The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realisation that it will probably have to settle for an interim agreement and hope something better can still be negotiated.

The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms.

Trump’s cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the US government. US customs duties revenue shot past $100 billion in the federal fiscal year through to June, according to US Treasury data on Friday.

EU warns of ‘countermeasures’, Italy to remain focused on trade talks

The EU is prepared to take the necessary steps to safeguard its interests if the US proceeds with the 30pc tariff on European goods, European Commission President Ursula von der Leyen said.

Von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.

“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued. “We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

Meanwhile, Italian Prime Minister Giorgia Meloni said in a statement from her office that it is crucial to remain focused on trade negotiations with the United States and avoid further polarisation.

Meloni was confident that a “fair deal” could be reached on tariffs between the European Union and the United States, the statement added.

“Rome fully supports the efforts of the European Commission,” the PM’s office said.

Mexico slams tariffs as ‘unfair deal’

Mexico slammed the 30pc tariffs as an “unfair deal,” according to a government statement.

“We mentioned at the table that it was an unfair deal and that we did not agree,” the Mexican economy and foreign ministries said in a joint statement.

Mexico is already in negotiations seeking an alternative to tariffs that would protect businesses and jobs on both sides of the border, the ministries added, saying they hope to avoid the duties.

Mexico is one of the countries most vulnerable to the Republican leader’s tariffs, with 80pc of its exports destined for the United States, its largest trading partner.

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