EU is considering taking necessary countermeasures against the US to protect its interests

Donald Trump has resumed his aggressive trade war tactics, with Mexico and Europe as the latest to be hit following weeks of failed negotiations. On Saturday, the POTUS threatened to impose a 30% tariff on imports coming from Mexico and the European Union, effective from August 1, an outcome that could have been avoided if the weeks of negotiations with key U.S. allies and top trading partners yielded a comprehensive trade deal. The EU and Mexico respond to fresh threats Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexico’s President Claudia Sheinbaum. The move has escalated the trade war and has left U.S. allies angry, as the European Union and Mexico are among the country’s largest trading partners. Of course, the E.U. is not backing down and has said it is prepared to take necessary steps to safeguard its interests should the 30% tariff be imposed on European goods. “Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” Von der Leyen stated before adding, “We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.” According to Von der Leyen, if the 30% tariffs stand, it “would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.” Mexico responded similarly. The country’s economy ministry said on Saturday that it was informed that the U.S. would send a letter during a bilateral meeting on Friday with U.S. officials. “We mentioned at the roundtable that it was unfair treatment and that we did not agree,” the ministry’s statement said. Trump’s trade war to continue amid a rallying stock market and bullish economy Mexico and the EU were not the only countries Trump targeted in his latest tariff rollout. The orange-haired Republican also sent similar letters to 23 other U.S. trading partners this week, including Canada, Japan, and Brazil, slamming them with blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper. According to him, the 30% tariff rate was “separate from all sectoral tariffs”, meaning 50% levies on steel and aluminum imports and a 25% tariff on auto imports would remain unchanged at those levels. It is believed that the August 1 deadline gives countries targeted by Trump’s letters time to negotiate a trade deal that could lower the threatened tariff levels. The last time Trump took such an aggressive stance on trade negotiations was in early April when he announced a slew of reciprocal tariffs against trading partners, sending the markets tumbling before the White House delayed implementation. Trump was supposed to use the 90-day pause in April to strike several new trade deals with trading partners. However, he has only been able to secure framework agreements with Britain, China, and Vietnam. The EU had hopes of reaching a comprehensive trade agreement with the U.S. for the 27-country bloc, but Trump’s letter to the EU included a demand that Europe drop its own tariffs if it hopes to secure any deal now and in the future. “The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit,” Trump wrote. While the tariffs have started generating revenue for the U.S., it has also strained security relationships with some of its closest partners like Japan. Last week, Japanese Prime Minister Shigeru Ishiba highlighted Japan’s need to end its dependence on the U.S. in key areas. The tariff wars have also pushed Canada and some European allies to re-examine their security dependence on the United States, with some starting to consider purchasing non-U.S. weapons systems. Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More

Source: Cryptopolitan