Trump Threatens 30% Tariffs on EU and Mexico, Escalates Trade Tensions with 23 Nations

Trump Threatens 30% Tariffs on EU and Mexico, Escalates Trade Tensions with 23 Nations

Economists warn that sustained tariffs could reduce U.S. GDP growth by 1% in 2025 and increase household costs by approximately $1,200 annually.

By RMN News Service
July 13, 2025

Washington, D.C. – On July 12, 2025, President Donald Trump announced plans to impose 30% tariffs on goods from the European Union and Mexico, effective August 1, intensifying his aggressive trade policy. 

The announcement, made via letters posted on Truth Social, also includes tariff threats ranging from 20% to 50% on 23 other nations, including Canada, Japan, and Brazil, as part of Trump’s strategy to address trade deficits and promote U.S. manufacturing.

The proposed tariffs mark a significant escalation, with the EU facing a 10% increase from the earlier 20% “reciprocal” tariff rate set in April, and Mexico seeing a 5% hike from its previous 25% rate tied to fentanyl trafficking concerns. 

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Trump’s letters emphasized large trade deficits, accusing the EU of unfair trade barriers and Mexico of failing to curb cartel activities. He warned of even higher duties if either retaliates, though he left room for negotiations to reduce the rates.

EU Commission President Ursula von der Leyen expressed disappointment, warning that the tariffs would disrupt trans-Atlantic supply chains and pledging “proportionate countermeasures” if needed. 

Mexican President Claudia Sheinbaum called the tariffs an “unfair deal” but remained optimistic about reaching an agreement, stressing Mexico’s sovereignty. Other nations, including Brazil, face up to 50% tariffs, with Trump citing issues like trade imbalances and, in Brazil’s case, the prosecution of former President Jair Bolsonaro.

The tariff blitz, which also includes a 50% levy on copper imports, has sparked global market unease, with fears of rising consumer prices and supply chain disruptions. Economists warn that sustained tariffs could reduce U.S. GDP growth by 1% in 2025 and increase household costs by approximately $1,200 annually. While some countries, like the UK and Vietnam, have secured preliminary trade deals, the lack of progress in negotiations with others has fueled uncertainty, leaving global trade partners scrambling to respond.