Written by The Banking Post
President Donald Trump has announced sweeping new 30% tariffs on imports from Mexico and the European Union, set to take effect on August 1, after negotiations with the US’s key trading partners failed to produce a broader trade agreement.
The tariffs, detailed in separate letters posted on Trump’s Truth Social account on Saturday, mark a sharp escalation in the administration’s protectionist trade agenda.
Earlier this week, the White House unveiled additional tariffs targeting several other countries, including Japan, South Korea, Canada and Brazil, alongside a steep 50% tariff on copper.
The European Union, which had been pursuing a comprehensive trade deal with Washington covering the 27-member bloc, had braced for the move amid signs of a wider tariff offensive. Months of negotiations for an ambitious pact — including a mutual zero-tariff arrangement on industrial goods — had stalled, leaving EU officials now hoping for at least an interim agreement.
The bloc itself faces internal divisions: Germany has pushed for a quick deal to shield its critical export industries, while countries like France have cautioned against accepting terms seen as too heavily tilted toward US interests.
Since returning to the White House, Trump’s flurry of new tariff measures has significantly boosted customs revenue. According to the US Treasury, customs duties topped $100 billion in the federal fiscal year through June — with recent tariff orders now generating tens of billions of dollars in new monthly revenue.
