Overview

• President Trump announced 30% tariffs on imports from the European Union and Mexico effective August 1.
• He cited persistent U.S. trade deficits as a national security threat and criticized Mexico’s efforts on border security as insufficient.
• Negotiations with EU and Mexican officials have stalled less than two weeks before the deadline despite previous pauses and deadline extensions.
• European Commission President Ursula von der Leyen and Mexico’s government have reaffirmed commitment to dialogue alongside preparations for proportionate countermeasures.
• The administration relied on the International Emergency Economic Powers Act to bypass WTO rules, heightening uncertainty for global supply chains and U.S. consumers.