US President Donald Trump announced Saturday that major US trading partners Mexico and the European Union would face a 30% tariff starting next month, escalating pressure in his ongoing trade wars. The new tariffs, set to take effect on August 1, were outlined in separate letters shared on his Truth Social platform. Trump cited Mexico’s alleged role in the flow of illicit drugs into the US and the trade imbalance with the EU as the reasons for the tariffs.

These new duties are steeper than the 25% tariff imposed on Mexican goods earlier this year, though products entering under the US-Mexico-Canada Agreement (USMCA) will be exempt. Canada also received a similar letter, indicating a 35% tariff on its goods.

Canada, EU deepen trade alliance 

As a result, Canada is reinforcing its strategic alignment with the European Union to counterbalance what officials describe as a weakening US trade posture. Speaking at a joint press conference in Ottawa on Friday, Canadian Minister of Industry Mélanie Joly confirmed that Ottawa is working closely with Brussels to defend open markets and bolster economic sovereignty.

Throughout the week, Trump has been sending updated tariff letters to more than 20 countries, each detailing their specific duties.

The Trump administration is facing increasing pressure to deliver on its promises of trade agreements, as only two deals, one with Britain and another with Vietnam, have been finalized so far, alongside temporary reductions in tariffs with China.

Mexico has 'not done enough'

The new tariffs for Mexico announced by Trump will be higher than the 25% levy he imposed earlier this year, although products entering under the US-Mexico-Canada Agreement (USMCA) will still be exempt.

In his letter, Trump stated, "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States."

The EU tariff represents a significant increase from the 20% levy Trump introduced in April, as negotiations with the bloc continue.

The EU, along with several other economies, was initially set to face a rise in US tariffs from a baseline of 10% on Wednesday. However, Trump delayed the deadline to August 1, just days before the higher rates were scheduled to take effect.

EU, Mexico respond

EU chief slams Trump tariff threat

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European Commission chief Ursula von der Leyen hit out Saturday at new tariffs threatened by US President Donald Trump while maintaining a willingness to work for a trade deal with Washington.

"Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," von der Leyen said in a statement.

"We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," she added.

On Friday, Brussels indicated it was open to negotiating a deal with Washington to prevent the return of the 20% tariffs, and the most recent letter suggests that discussions will continue.

In response to Trump’s earlier steel and aluminum tariffs, the EU has prepared retaliatory duties on US goods worth approximately 21 billion euros. These duties have been suspended until July 14, but European officials have not yet indicated whether they plan to extend the suspension, though they could do so quickly if necessary.

Macron calls for accelerated retaliatory measures 

As for France's president, he maintained that the European Union should accelerate the preparation of retaliatory measures, including anti-coercion instruments.

"It is more than ever up to the Commission to assert the Union's determination to defend European interests resolutely," Macron wrote on X.

The EU's Anti-Coercion Instrument (ACI) allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies, and offers a wide scope for action. It allows the EU to limit access to public procurement tenders for companies from a third country and to take action affecting services trade or investment.

Germany urges pragmatism

Germany's economy minister on Saturday called for pragmatism in European Union tariff negotiations with the United States, following Trump's 30% tariff threat.

"The EU now must, in the time that remains, negotiate in a pragmatic manner a solution with the United States," Germany's Economy Minister Katherina Reiche said in a statement.

"A pragmatic outcome to these negotiations must be reached quickly," she added.

BDI calls for quick resolution

Earlier, Germany's main industrial body urged a quick resolution.

"President Trump's announcement is a wake-up call for industry on both sides of the Atlantic," said the Federation of German Industries (BDI) in a statement.

"A trade conflict between two economic areas as closely linked as the EU and the United States harms economic recovery, innovation strength, and ultimately confidence in international cooperation," warned Wolfgang Niedermark, a senior BDI official.

The federation "calls on the German government, the European Commission, and the American administration to now very quickly find solutions and to avoid an escalation."

Mexico calls tariffs unfair

A joint statement by Mexico's foreign and economy ministries said that Mexican authorities consider the decision of the US government to introduce 30% tariffs from August 1 to be unfair and are already holding talks with the administration of US President Donald Trump.

"We were informed that, as part of the profound change in the US trade policy, all countries would receive a letter signed by the US president establishing new tariffs starting from August 1. We mentioned at the meeting that this is an unfair deal and that we disagree," the statement, published on the Mexican Foreign Ministry's website on Saturday, read.

Mexican and US officials from key ministries held a bilateral meeting in Washington on Friday. As a result, a permanent bilateral working group was formed to address key issues, the statement said.

"It was agreed that the first task of the new permanent bilateral working group would be to develop an alternative that could protect businesses and jobs on both sides of the border by a specified date," the joint statement of the Mexican ministries read.