News
July 15, 2025

U.S. Sets 30% Tariffs on EU, Mexico Imports

Caroline Raffetto

The U.S. will soon impose sweeping new tariffs on imports from the European Union and Mexico as President Donald Trump continues his push for tougher trade measures.

Trump unveiled the new 30% duty rates in letters posted on Truth Social Saturday morning, confirming the tariffs will take effect August 1. The announcement is part of a broader wave of country-specific trade actions targeting some of America’s biggest partners, including Canada, Brazil, Japan and South Korea — all facing similar hikes next month.

In a letter to Mexican President Claudia Sheinbaum, Trump stuck to familiar language used in earlier trade pronouncements, warning that tariffs could rise further if Mexico retaliates. He also cited cross-border security concerns, linking cartel activity and fentanyl trafficking to the move.

Since March, many Mexican imports have already been subject to a 25% tariff unless they qualify for relief under the United States-Mexico-Canada Agreement (USMCA). The new letter did not clarify whether the USMCA exemption will remain in place once the 30% tariff takes effect, or whether it will entirely replace the 25% rate.

Mexico’s government responded swiftly. According to a joint statement from its economy and foreign affairs ministries, Mexican officials met with U.S. representatives on Friday to launch a permanent working group aimed at addressing pressing bilateral issues, including tariffs, security, migration, water and economic concerns.

“It is highly relevant to have established, since July 11, the necessary channels and space to resolve any possibility of new tariffs going into effect on August 1,” the release states in Spanish. “In other words, Mexico is already in negotiations.”

Mexico described the new tariffs as unfair and said it would push to find an alternative before they kick in next month.

Trump’s letter to European Commission President Ursula von der Leyen echoed the tone of earlier messages but included one new line absent from his previous posts: “The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large trade deficit.” Whether this is a commitment from the EU or simply a U.S. demand remains unclear.

Von der Leyen responded Saturday, warning of consequences if no deal is reached. “A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic. We will continue working towards an agreement by August 1,” she wrote on X. “At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.”

Earlier this year, Trump floated even steeper penalties — suggesting a 50% tariff on EU imports starting July 9. Since February, the series of new tariffs has touched about 70% of the EU’s trade with the U.S., von der Leyen said in a speech Tuesday.

“The scale and the scope of these measures is unprecedented,” von der Leyen said. “Our line has been clear. We will be firm. We do prefer a negotiated solution. This is why we are working closely with the US administration to get an agreement.”

If talks fail, the EU is prepared to respond with its own trade barriers covering over $100 billion in U.S. goods, including a wide range of industrial and agricultural products.

Behind the heated exchanges is a growing U.S. trade deficit: The U.S. posted a $236 billion trade gap with the EU and a $172 billion deficit with Mexico in 2024, according to the U.S. International Trade Commission.

The next few weeks are likely to be critical as officials on both sides scramble to reach a resolution before the new tariffs take effect — or risk escalating a trade dispute that could ripple through industries from autos to agriculture and consumer goods on both continents.

Originally reported by Max Garland and Phillip Neuffer in Construction Dive.

News
July 15, 2025

U.S. Sets 30% Tariffs on EU, Mexico Imports

Caroline Raffetto
Construction Tariffs
Announcements
United States

The U.S. will soon impose sweeping new tariffs on imports from the European Union and Mexico as President Donald Trump continues his push for tougher trade measures.

Trump unveiled the new 30% duty rates in letters posted on Truth Social Saturday morning, confirming the tariffs will take effect August 1. The announcement is part of a broader wave of country-specific trade actions targeting some of America’s biggest partners, including Canada, Brazil, Japan and South Korea — all facing similar hikes next month.

In a letter to Mexican President Claudia Sheinbaum, Trump stuck to familiar language used in earlier trade pronouncements, warning that tariffs could rise further if Mexico retaliates. He also cited cross-border security concerns, linking cartel activity and fentanyl trafficking to the move.

Since March, many Mexican imports have already been subject to a 25% tariff unless they qualify for relief under the United States-Mexico-Canada Agreement (USMCA). The new letter did not clarify whether the USMCA exemption will remain in place once the 30% tariff takes effect, or whether it will entirely replace the 25% rate.

Mexico’s government responded swiftly. According to a joint statement from its economy and foreign affairs ministries, Mexican officials met with U.S. representatives on Friday to launch a permanent working group aimed at addressing pressing bilateral issues, including tariffs, security, migration, water and economic concerns.

“It is highly relevant to have established, since July 11, the necessary channels and space to resolve any possibility of new tariffs going into effect on August 1,” the release states in Spanish. “In other words, Mexico is already in negotiations.”

Mexico described the new tariffs as unfair and said it would push to find an alternative before they kick in next month.

Trump’s letter to European Commission President Ursula von der Leyen echoed the tone of earlier messages but included one new line absent from his previous posts: “The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large trade deficit.” Whether this is a commitment from the EU or simply a U.S. demand remains unclear.

Von der Leyen responded Saturday, warning of consequences if no deal is reached. “A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic. We will continue working towards an agreement by August 1,” she wrote on X. “At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.”

Earlier this year, Trump floated even steeper penalties — suggesting a 50% tariff on EU imports starting July 9. Since February, the series of new tariffs has touched about 70% of the EU’s trade with the U.S., von der Leyen said in a speech Tuesday.

“The scale and the scope of these measures is unprecedented,” von der Leyen said. “Our line has been clear. We will be firm. We do prefer a negotiated solution. This is why we are working closely with the US administration to get an agreement.”

If talks fail, the EU is prepared to respond with its own trade barriers covering over $100 billion in U.S. goods, including a wide range of industrial and agricultural products.

Behind the heated exchanges is a growing U.S. trade deficit: The U.S. posted a $236 billion trade gap with the EU and a $172 billion deficit with Mexico in 2024, according to the U.S. International Trade Commission.

The next few weeks are likely to be critical as officials on both sides scramble to reach a resolution before the new tariffs take effect — or risk escalating a trade dispute that could ripple through industries from autos to agriculture and consumer goods on both continents.

Originally reported by Max Garland and Phillip Neuffer in Construction Dive.