Overview

• Trump cited a $236 billion trade deficit with the EU and Mexico’s role in fentanyl trafficking as grounds for 30% surcharges.
• The new duties raise Mexico’s rate from 25% to 30% and impose a uniform 30% levy on all EU imports.
• He threatened to add any future EU retaliatory tariffs on top of the 30% base rate, escalating the tit-for-tat dynamic.
• The EU has paused its $21 billion in proposed steel and aluminum countermeasures and will hold a July 14 trade ministers meeting to finalize its response.
• Brussels officials warn that widespread 30% duties risk severe disruptions to transatlantic supply chains for sectors ranging from autos to medical goods.