Donald Trump announces 30 per cent tariffs against EU, Mexico to begin August 1
"Reality Vs Rhetoric — Let’s take Vietnam’s Trade Surplus with the US as an Example [...] The U.S. economy is focused on services (like banking or tech) and high-end products (like airplanes or pharmaceuticals). But Vietnam mostly needs affordable goods that help its factories run — things like machinery or raw materials — which it can get cheaper from other countries like China or South Korea. 4. Global Supply Chains Are Complicated A lot of what Vietnam sells to the U.S. isn’t even fully “Vietnamese.” For example, parts might come from China or Japan, get assembled in Vietnam, and then shipped to America. Stopping this flow would mess up global businesses that rely on these supply chains — not just in Vietnam but everywhere. What About Tariffs? The Trump administration thought tariffs (basically taxes on imports) could fix the problem by making Vietnamese goods more expensive for Americans to buy. In theory, this would reduce how much we import from them and encourage Americans to buy more stuff made at home. P - But here’s the catch: tariffs don’t magically make people stop buying things they need or want. Instead, they just make those things more expensive for consumers and businesses in the U.S.! Even with a 46% tariff slapped on Vietnamese goods in 2025, Americans are still going to buy plenty of cheap clothes and electronics from somewhere — if not from Vietnam, then maybe from another country like Bangladesh or Mexico."
11 hours ago
Donald Trump announced the tariffs on two of the United States' biggest trade partners in letters posted to his social media account. (Reuters: Ken Cedeno)
In short:
Donald Trump has announced he is imposing tariffs of 30 per cent on goods imported from the European Union and Mexico.
It is the latest escalation in the US president's trade war and comes after weeks of negotiations with key trading allies failed to reach a more comprehensive trade deal.
What's next?
The tariffs will come into effect on August 1.
Donald Trump has announced a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, the latest escalation in the US president's trade war.
The announcement comes after weeks of negotiation with key trading allies failed to reach a more comprehensive trade deal.
Mr Trump announced the tariffs on two of the United States' biggest trade partners in letters posted to his social media account.
In his letter to Mexico's leader, Mr Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States.
But he said the country has not done enough to stop North America from turning into a "Narco-Trafficking Playground."
"Mexico has been helping me secure the border,BUT, what Mexico has done, is not enough," Mr Trump added.
In his letter to the European Union, Mr Trump said that the US trade deficit was a national security threat.
----- [Insert: Trump's "national security threat" is just one of a tsunami of lies Trump is telling to justify his - 'this will work because i am the president of the most powerful country in the world, and virtually every other country needs our consumer spending to keep their own economies going' - tariff bullying:
Trump’s lurking assault on Canada rests on endless lies and irrational populism Published: February 19, 2025 1.53am AEDT [...] This is nothing less than an attempt at the economic subordination of Canada by its giant and — until very recently — friendly neighbour and ally. But what makes Trump’s impending trade war even more absurd is that it is based on a series of lies.
Trade, drugs, migrants, banks
Trump has claimed that the U.S. has a “US$200 or $250 billion” trade deficit with Canada. The American government’s own data show that the trade in goods deficit with Canada in 2024 was US$55 billion.
But when you factor in services (in technology or finance), an area in which the U.S. currently enjoys a trade surplus, the annual U.S.-Canada annual trade deficit falls to US$45 billion. And if you exclude energy exports, sold to the U.S. at a discount, the trade scales tip decidedly in favour of the U.S.
Then we also have Trump’s claim that tariffs are needed to penalize Canada for allowing an “invasion” of drugs (mainly fentanyl) and undocumented migrants into the U.S.
But once again, figures from his own government agencies show that only 1.5 per cent of migrants apprehended in 2024, and a mere 0.2 per cent of all fentanyl impounded at U.S. borders in 2024, originated in Canada.
"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 the letter to the EU.
"Our relationship has been, unfortunately, far from Reciprocal."
EU warns of countermeasures
European Commission President Ursula von der Leyen said the EU is prepared to take the necessary steps to safeguard its interests if the US proceeds with its 30 per cent tariff on European goods.
European Commission President Ursula von der Leyen said the EU is prepared to take the necessary steps to safeguard its interests. (Reuters: Photo/Stephanie Lecocq)
Ms Von der Leyen said in a statement that the bloc remained ready "to continue working towards an agreement by August 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."
Mr Trump is in the midst of an announcement blitz of new tariffs with allies and foes alike.
Earlier this week, the US president issued new tariff announcements for a number of countries, including Japan, South Korea, Canada and Brazil.
With the reciprocal tariffs, Mr Trump is effectively blowing up the rules governing world trade.
For decades, the US and most other countries abided by tariff rates set through a series of complex negotiations known as the Uruguay round.
Countries could set their own tariffs — but under the "most favoured nation'' approach, they couldn't charge one country more than they charged another.
Trump's beef with Brazil Donald Trump is threatening a 50 per cent tariff on Brazil, which is a major supplier of beef, coffee and orange juice to the US. [In a letter to Brazil's president, Mr Trump said the tariffs were "due in part to Brazil's insidious attacks on free elections" and claimed the treatment of former president Jair Bolsonaro was a "witch-hunt" and "international disgrace". P - "[However], there will be no tariff if Brazil, or companies within your Country, decide to build or manufacture product within the United States," Mr Trump wrote. P - The tariffs are due to take effect on August 1.] https://www.abc.net.au/news/2025-07-11/trumps-tariff-war-with-brazil-opens-gate-for-australian-beef/105517762 In light of GOP efforts to make voting more difficult in the US for groups tending to vote more for Democrats that 'due to attacks on free elections', glares neon sign red bullshit, and a sane US president would not make consumer goods more expensive for voters in the US to help a friend of his in Brazil]
With Saturday's letters, Mr Trump has now issued tariff conditions on 24 countries and the 27-member European Union.
The European Union's chief trade negotiator said earlier this week that a trade deal to avert higher tariffs on European goods imported to the US could be reached "even in the coming days."
Maroš Šefcovic told EU lawmakers in Strasbourg, France on Wednesday that the EU had been spared the increased tariffs contained in the letters Mr Trump sent on Monday, and that an extension of talks would provide "additional space to reach a satisfactory conclusion".
The bloc collectively sells more to the US than any other country.
US goods imports from the EU topped $US553 billion ($840 billion) in 2022, according to the Office of the US Trade Representative.
Mr Trump on April 2 proposed a 20 per cent tariff for EU goods and then threatened to raise that to 50 per cent after negotiations did not move as fast as he would have liked.
Mr Šefcovic did not mention any tariff figures.
'Letters to other countries about taxes he's going to levy on his citizens'
The higher tariffs as well as any EU retaliation had been suspended as the two sides negotiate.
However the base rate of 10 per cent for most trade partners as well as higher rates of 25 per cent on autos and 50 cent on steel and aluminium had gone into effect.
Douglas Holtz-Eakin, a former Congressional Budget Office director and president of the centre-right American Action Forum, said the letters were evidence that serious trade talks were not taking place over the past three months.
He stressed that nations were instead talking amongst themselves about how to minimise their own exposure to the US economy and Trump.
"They're spending time talking to each other about what the future is going to look like, and we're left out," Mr Holtz-Eakin said.
He added that Mr Trump was using the letters to demand attention, but, "in the end, these are letters to other countries about taxes he's going to levy on his citizens."
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