Why it matters:
The tariffs mark a sharp escalation in trade tensions with the U.S.'s key trade partners. The move could disrupt global supply chains, raise consumer prices, and trigger retaliatory measures. It’s part of Trump’s broader strategy to pressure trading partners and reshape U.S. trade policy ahead of the 2024 election
The big picture:
In a post on Truth Social, Trump shared separate letters addressed to European Commission President Ursula Von Der Leyen and Mexican President 'Claudia Sheinbaum', announcing a 30% tariff on goods bound for the U.S. from Europe and Mexico.
The move signals a dramatic shift in U.S. trade policy, reigniting tensions with major allies. Framed as a response to trade deficits and border security concerns, the move could destabilize global markets, disrupt supply chains, and prompt retaliatory measures, just as negotiations were gaining traction
What he's saying:
Trump warned in both letters that if the EU or Mexico retaliates with higher tariffs, “then, whatever the number you choose to raise them by, will be added on to the 30% that we charge,” he said.
In his letter to Sheinbaum, Trump recognized the country’s efforts in curbing the flow of undocumented migrants and fentanyl into the U.S. However, he criticized Mexico for not doing enough to stop North America from becoming a “Narco-Trafficking Playground.”
“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,” Trump wrote in his letter to the European Commission president.
“Our relationship has been, unfortunately, far from Reciprocal,” he added.
Go deeper:
The letter puts U.S.-EU trade talks at risk, as the bloc had aimed to finalize a comprehensive trade deal this month.
Earlier this week, Trump unveiled a new wave of tariffs, hitting countries such as Japan, South Korea, Canada, and Brazil, while also imposing a 50% tariff on copper imports.
Hossein Amiri
