Trump Slaps 30% Tariff on EU Goods, Offers Reprieve If Production Moves to US

The President of the United States, Donald Trump, announced on Saturday the imposition, as of August 1st, of tariffs of 30% on all products from the European Union. For her part, the President of the European Commission, Ursula von der Leyen, announced on Sunday that the European Union will hold in abeyance the retaliatory measures against the US tariffs that were to be reactivated this Monday, with the aim of “continuing negotiations” with the US President until August 1st. 

“Beginning August 1, 2025, we will charge the European Union a tariff of only 30% on EU products sent to the United States, independent of all sectoral tariffs,“ Trump made known through a letter published on his Truth Social platform and addressed to the president of the European Commission, Ursula von der Leyen.

As he did in previous days with other countries, Trump announced that he will reverse his decision “if the European Union or its companies decide to manufacture products in the United States”.

The European Union will hold in abeyance the retaliatory measures against U.S. tariffs that were to be reactivated on Monday.

“In fact, we will do our utmost to obtain approvals quickly, professionally and routinely, i.e. in a matter of weeks,“ the letter adds, before warning, also following the usual format, that if for some reason the EU decides to increase its tariffs and retaliate, the EU will not be able to take any further action against the U.S. tariffs.The letter adds, before warning, also following the usual format, that if for some reason the EU decides to increase its tariffs and retaliate, “the amount it chooses to increase them will be added to the 30% we charge”.

Tariffs on Mexico

On the other hand, Trump also published on Saturday the letter sent to Mexico on his account on the Truth Social platform. “It is a great honor for me to send you this letter that demonstrates the strength and commitment of our trade relationship and the fact that the United States of America has agreed to continue working with Mexico,“ Trump notes in the missive, addressed to Mexican President Clauda Sheinbaum.

Trump further argues that despite the bilateral “strong relationship,“ he has decided to impose these tariffs in response to the “fentanyl crisis,“ which he considers “caused in part by Mexico’s failure to stop the cartels, made up of the most despicable people to ever set foot on Earth.“

“Mexico has helped me keep the border secure, BUT, what Mexico has done is not enough. Mexico has not yet stopped the cartels that want to turn all of North America into a drug trafficking playground. Clearly, I can’t let that happen,“ he has argued.

Therefore, as of August 1, there will be a general tariff of 30% to which tariffs imposed on each economic sector would have to be added. “Goods that evade the higher tariffs will be subject to a higher tariff. As you are already aware, there will be no tariffs if Mexico or your country’s companies decide to build or manufacture products inside the United States and, in fact, we will do everything we can to get it passed quickly, professionally and routinely in a matter of weeks,“ Trump has stated.

In addition, Trump warns that if Mexico decides to raise tariffs in response, whatever the increase, this figure will be added to the 30 percent U.S. tariff.