Overview

• President Trump cited a large US–EU trade deficit and Mexico’s role in illicit drug flows when announcing 30% duties on all imports from the bloc and its southern neighbour.
• The new rate replaces existing 10% to 25% levies on EU goods and raises Mexico’s surcharge from 25% to 30%, with exemptions for sectors covered by the US-Mexico-Canada trade pact left unclear.
• Brussels extended its pause on 50% tariffs for US-exported steel and aluminium until early August while preparing €21 billion in proportional countermeasures if no deal is reached.
• Canada has been notified of a separate 35% tariff on its exports, and roughly 60 other nations face minimum surcharges above 10% unless they secure agreements by the August 1 deadline.
• Industry groups warn the tariffs risk disrupting transatlantic supply chains and stoking inflation, and economists caution they could undermine WTO norms and global market stability.