Overview

• On July 12 President Trump published letters on social media notifying the EU and Mexico of new 30 percent reciprocal tariffs starting August 1.
• The administration cited a large U.S. trade deficit with the EU and insufficient Mexican measures to curb fentanyl smuggling as justification for the tariff increase.
• The duties will apply to all imports not already covered by existing national security tariffs on steel, aluminum and automobiles.
• Trump warned that any retaliatory measures by Brussels or Mexico would prompt further increases in tariff rates.
• EU Commission President Ursula von der Leyen announced on July 13 an extension of the suspension on countermeasures until early August to allow ongoing negotiations.