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EU, Mexico criticize Trump’s 30% tariff threat, warn of countermeasures

by bodhiwire
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Washington D.C., July 13: The European Union and Mexico criticized U.S. President Donald Trump’s proposal to impose a 30% tariff on their exports to the United States starting August 1, warning of possible retaliation as global trade tensions escalate.

In separate statements, both the EU and Mexico expressed disappointment over Trump’s threat, but said they would continue to seek negotiations with Washington.

“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” European Commission President Ursula von der Leyen said on Saturday.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she added.

The proposal marks a sharp escalation in Trump’s trade agenda. The White House also announced new import taxes this week on goods from Japan, South Korea, Canada, and Brazil. The administration has now proposed tariff conditions affecting 24 countries and the EU, officials said.

In a letter to von der Leyen, Trump accused the EU of maintaining long-standing trade barriers that have led to persistent deficits.

“We have had years to discuss our trading relationship with the European Union, and have concluded that we must move away from these long-term-large, and persistent, trade deficits, engendered by your tariff, and non-tariff, policies,” Trump wrote. “Our relationship has been, unfortunately, far from reciprocal.”

The U.S. trade deficit with the EU stood at $235.6 billion in 2024, according to the Office of the U.S. Trade Representative.

Trump warned both the EU and Mexico that retaliation would lead to even higher tariffs, threatening increases beyond the proposed 30%.

European leaders reacted with concern but called for continued talks.
French President Emmanuel Macron voiced “very strong disapproval” of the new tariff plan, suggesting the EU accelerate preparations for “credible countermeasures.”

Bernd Lange, head of the European Parliament’s trade committee, called the U.S. move “a slap in the face for the negotiations.”
“This is no way to deal with a key trading partner,” Lange said, urging the EU to adopt countermeasures as early as Monday.

Italy’s Prime Minister Giorgia Meloni struck a more conciliatory tone, saying she trusted that “a fair agreement could be reached” to avoid a trade war.
Dutch Prime Minister Dick Schoof called for the EU to remain “united and resolute” in pursuing a “mutually beneficial deal.”

The German Association of the Automotive Industry warned that escalating tariffs would drive up costs for German carmakers and suppliers, describing the situation as “regrettable.”

Mexico also condemned the tariff proposal. In his letter to Mexican President Claudia Sheinbaum, Trump said Mexico had “not done enough to stop North America from becoming a Narco-Trafficking Playground.”

President Sheinbaum responded that while she was optimistic about reaching a deal, Mexico’s sovereignty was non-negotiable.

“We believe that we will reach an agreement with the USA and achieve better conditions,” Sheinbaum said on Saturday.
“There is something that is never negotiated, ever, and that is the sovereignty of our country.”

The Trump administration has not clarified whether goods covered by the 2020 United States-Mexico-Canada Agreement (USMCA) will be exempt from the proposed tariffs.

Trump has made tariffs a centerpiece of his trade policy since returning to office, frequently targeting the EU for what he calls “unfair trade practices.” In April, he proposed a 20% tariff on EU goods, threatening to raise it to 50% if talks failed.

Earlier this week, the White House sent a letter to Canada warning of a 35% tariff on Canadian imports.

White House trade adviser Peter Navarro has set a target of “90 deals in 90 days” to reshape U.S. trade relationships. So far, the Trump administration has announced preliminary agreements with the United Kingdom and Vietnam, while negotiations continue with others.

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