Trump hits Mexico and EU with 30% tariffs
The US president is following through with his global tariff agenda, with hikes for Mexico and the EU starting next month.
On 12 July, US president Donald Trump shared letters sent to the heads of state for the EU and Mexico, declaring a 30% tariff on goods to begin on 1 August.
“We have had years to discuss our trading relationship with the European Union, and have concluded that we must move away from these long-term, large, and persistent trade deficits, engendered by your tariff and non-tariff policies and trade barriers,” reads Trump’s letter to European Commission president Ursula von der Leyen.
In April, Trump held a press conference announcing a baseline 10% tariff with a select few countries receiving higher rates. He later paused these country-specific hikes to allow for trade negotiations.
The EU’s fee has now climbed from the 20% that Trump initially proposed.
Following the announcement, EU trade commissioner Maroš Šefčovič warned that a 30% tariff would negatively effect both trade parties. He added that he will do everything he can to avoid that scenario.
The Distilled Spirits Council of the United States (Discus) president Chris Swonger, meanwhile, called for zero-for-zero tariffs for spirits. He said he remains hopeful that ongoing negotiations will result in their permanent return.
Last year, US spirits exports totalled US$2.4 billion. The EU was the leading market at US$1.2 billion.
Currently, US tariffs are suspended on imports from Mexico and Canada that comply with the US-Canada-Mexico Agreement (USMCA). This includes spirits produced in these countries. In 2024, the US imported US$5.2 billion worth of Tequila from Mexico.
In a letter to president Sheinbaum of Mexico, Trump said, “Mexico has been helping me secure the border, but what Mexico has done is not enough.”
Alongside the increased tariffs on the EU and Mexico, Trump announced a 35% tariff on Canada and a 25% tariff on Japan.
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