Washington: The European Union (EU) and Mexico have voiced their disapproval of US President Donald Trump's proposed imposition of 30% tariffs on their imports starting August 1. The announcement has sparked concerns over potential retaliatory trade measures that could escalate into a broader trade conflict.
According to BBC, Mexico denounced what it described as Trump's "unfair deal," emphasizing that its sovereignty remains non-negotiable. Meanwhile, EU Commission President Ursula von der Leyen indicated that the EU is prepared to implement "proportionate countermeasures" if necessary, although both parties expressed a desire to continue negotiations with the United States.
President Trump has warned both the EU and Mexico that any retaliatory import duties would result in further increases in US tariffs, potentially exceeding the initial 30% proposal. In a recent interview with Fox News, Trump acknowledged the discontent among some countries, yet maintained that the tariffs were bringing in significant revenue.
The EU, a frequent target of Trump's trade policies, previously faced a proposed 20% tariff on its goods, which was later threatened to be increased to 50% as trade discussions reached an impasse. Despite hopes for an agreement by July 9, no progress has been reported.
In 2024, the US trade deficit with the EU was recorded at $235.6 billion, as per the US trade representative's office. Von der Leyen affirmed the EU's readiness to work towards an agreement by the August 1 deadline and emphasized the EU's commitment to fair trading practices.
French President Emmanuel Macron expressed strong disapproval of Trump's tariff announcement, advocating for swift preparations of EU countermeasures if necessary. Bernd Lange, chair of the European Parliament's trade committee, criticized Trump's approach as detrimental to negotiations.
Some EU leaders, however, are still hopeful for a resolution. Italian Prime Minister Giorgia Meloni expressed confidence in reaching a fair agreement, while Dutch Prime Minister Dick Schoof stressed the importance of EU unity in pursuing a mutually beneficial deal with the US. Germany's automotive industry association warned of potential cost increases for German car manufacturers due to the trade conflict.
In a letter to Mexico's leadership, Trump criticized the country's efforts in addressing drug trafficking, while Mexican President Claudia Sheinbaum remained optimistic about reaching an agreement with the US. She reiterated that Mexico's sovereignty is non-negotiable, and discussions would focus on areas of mutual interest.
The proposed tariff hikes do not clarify whether Mexican goods under the 2020 United States-Mexico-Canada Agreement would be exempt, unlike the case with Canada, which faces a separate tariff threat.
As of now, the Trump administration has proposed tariff conditions affecting 24 countries and the EU, which comprises 27 member states. The White House has set an ambitious target of securing 90 trade deals in 90 days, with preliminary agreements announced with the United Kingdom and Vietnam.