Overview

• President Trump published letters on social media notifying the EU and Mexico that tariffs will rise to 30% on all non–security-related imports from August 1, up from 20% on EU goods and 25% on Mexican products.
• He justified the tariff increases by citing the United States’ chronic trade deficit with the EU and Mexico’s insufficient measures to curb fentanyl trafficking.
• European Commission President Ursula von der Leyen extended the suspension of roughly €210 billion in planned retaliatory duties into early August while warning that the EU stands ready to activate countermeasures.
• EU trade ministers are meeting on July 14 to align member-state positions, explore possible concessions and pursue a negotiated settlement with Washington.
• The tariff escalation is the latest move in the Trump administration’s broader strategy since April to leverage duties as bargaining chips across multiple trading partners.