President Donald Trump rekindled world trade tensions by announcing new prices on Saturday, threatening to impose a general levy of 30% on all imports from Mexico and the European Union from August 1, 2025.
This decision, delivered in official letters published on Trump’s Trump social platform, marks a return to his combative commercial posture and comes after weeks of failed negotiations with the main American trade partners.
The new prices are added to the sectoral rights previously imposed, including 50% prices on steel and aluminum and a 25% levy on automotive imports. The rate of 30%, said Trump, was “separated from all sectoral prices”, reporting a wide -based escalation. The letters have also been published in 23 other countries, including Canada, Japan and Brazil, with certain nations faced at rate rates of up to 50% on critical products such as copper.
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Justification and global reaction
In his letter to the president of the European Commission, Ursula von der Leyen, Trump demanded full access to the American market, arguing that the European Union must lower all its prices to reduce the American trade deficit. He quoted similar complaints in his communication with Mexican President Claudia Sheinbaum, accusing Mexico of not having done enough to stop drug cartels and fentanyl traffic.
“Mexico helped me get the border, but what Mexico has done is not enough,” wrote Trump. “Mexico has still not stopped the cartels that are trying to transform all of North America into a playground for Narco traffic.”
The letter to Mexico set the country’s proposed price at 30% – stronger than 35% of Canada – but Mexico officials described this decision as unfair and a violation of diplomatic standards.
“We mentioned during the round table that it was an unfair treatment and that we do not agree,” the Ministry of the Economy of Mexico said in a statement following a meeting with American officials.
President Claudia Sheinbaum expressed his careful optimism for resolving the issue, but was firm to protect national interests.
“There is something that is never negotiable: the sovereignty of our country,” she said.
Von der Leyen warned that prices “would disrupt essential transatlantic supply chains, to the detriment of companies, consumers and patients on both sides of the Atlantic”, and stressed that the EU would take “all the measures necessary to protect its interests”, including countermeasures.
Bernd Lange, president of the European Parliament Commercial Committee, described action as “a slap opposite”, urging Brussels to respond with clean prices on Monday.
Reprisals was looming as the allies thought back to us the links
The aggressive tariff policy has even disrupted the allies closest to America. Japanese Prime Minister Shigeru Ishiba said Tokyo was reassessing his economic dependence in Washington. Canada and several European countries have also started to examine their security and trade alignments, with certain alternatives exploring US military equipment.
Commercial experts warn that movements could ignite a tariff spiral similar to the American-Chinese trade war. “The American and Chinese prices went up together and they fell together. Not all along, but still below,” said Jacob Funk Kirkegaard, principal researcher at the Brussel Brussel reflection group. “This opens the door to another cycle of reprisals.”
The implications
Economists have warned that new prices will serve as an indirect tax on American households. A Yale study projects that the average effective rate rate of 18% – now the highest since 1934 – will cost the average American household of $ 2,400 this year only. Copper prices, which have already increased by more than 10% in anticipation, should push prices for even higher construction, electronics and renewable energy.
Peter Schiff, Euro Pacific chief economist, said the tariff plan could stir up inflation. “Consumers have to prepare for much higher prices and get used to higher interest rates,” he said. “It will not end well for the middle class.”
However, Trump’s prices have considerably strengthened government income. The revenues of American customs duties exceeded $ 100 billion during the current financial year, establishing a record rate, according to data from the US Treasury.
While the stock markets initially seemed unwelling – considering the heights of all recent times and solid economic fundamentals – investors are starting to take into account larger consequences. Citi and Pepperstone analysts have warned that unresolved trade voltage could weigh on European actions, depress the euro and complicate American profits for the third quarter.
The deadline for implementation of August 1 gives limited time to targeted countries to secure new transactions or discover exemptions. Trump’s history suggest that there could be room for negotiations, but many fear that even the temporary application cannot inflict sustainable damage to diplomatic and economic links.
