Washington: The US President Donald Trump has announced sweeping new tariffs on imports from the European Union and Mexico, raising fresh concerns over a possible global trade war.
Trump said that 30 percent tariff will take effect on August 1, a rate significantly higher than what had been expected by trade watchers.
The announcement, made via a series of posts on Trump’s Truth Social platform, marks a sharp escalation in his ‘America First’ economic approach and drew immediate reaction from global markets and foreign governments.
In a letter addressed to EU leadership, Trump accused the 27-nation bloc of maintaining long-term, large, and persistent trade deficits with the United States. He said the imbalance stems from non-reciprocal tariffs and other non-tariff barriers imposed by the EU over the years.
“Our relationship has been, unfortunately, far from reciprocal. We must move away from these long-term, large, and persistent trade deficits, engendered by your tariff and non-tariff policies,” Trump wrote.
The European Commission is now expected to demand urgent talks, with concerns that high-value EU exports like Belgian chocolate, Irish butter, and Italian olive oil will be hit the hardest.
While Trump offered partial praise to Mexico for helping curb illegal migration and the flow of fentanyl into the United States, he criticized the country’s broader efforts. Mexico is one of the United States’ largest trading partners and a key participant in the USMCA trade agreement.
The EU had reportedly reached a three-page agreement in principle with the US, but the document was not legally binding. European Trade Commissioner Maroš Šefčovič had been leading negotiations in recent weeks, working to avoid a repeat of past transatlantic tariff battles.
Officials in Brussels are expected to call for fresh negotiations, fearing that the US is using the threat of tariffs to extract broader concessions.
The UK, which recently finalized a narrow trade agreement with Washington focused on reducing car tariffs, may find itself caught in the crosscurrents.
