Trump intensifies trade war
Jul 13, 2025
New York [US], July 13: President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.
In an escalation of a trade war that has angered U.S. allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site on Saturday.
The EU and Mexico, both among the largest U.S. trading partners responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the U.S. for a broader trade deal before the deadline.
Mexican President Claudia Sheinbaum said she was sure an agreement can be reached. "I've always said that in these cases, what you have to do is keep a cool head to face any problem," Sheinbaum said at an event in the Mexican state of Sonora.
"We're also clear on what we can work with the United States government on, and we're clear on what we can't. And there's something that's never negotiable: the sovereignty of our country," she said.
Trump sent similar letters to 23 other trading partners this week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper.
The U.S. president said the 30% rate was "separate from all sectoral tariffs," indicating 50% levies on steel and aluminum imports and a 25% tariff on auto imports would remain.
The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs.
Some investors and economists have also noted Trump's pattern of backing off his tariff threats.
The spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation.
Source: Fijian Broadcasting Corporation
