Trump threatens 30% tariffs on EU and Mexico

On July 12, President Donald Trump announced a 30% tariff on imports from the European Union and Mexico, to take effect on Aug. 1.

In recent letters sent to the president of the EU Commission, Ursula von der Leyen, and Mexican President Claudia Sheinbaum, Trump announced the new tariff rates. Trump posted the letters to his Truth Social account. 

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” wrote Trump. 

Trump wrote that tariffs on the EU, a 27-nation bloc, would be waived if the countries built or manufactured within the US. He also threatened to add any retaliatory tariffs to the 30%. 

“Tariffs can be useful leverage only when they’re narrowly aimed and tied to clear, verifiable goals,” Donald Bryson, CEO of the John Locke Foundation, told the Carolina Journal. “With Mexico, peg any duty to concrete benchmarks — say, a documented drop in fentanyl seizures or a rise in cartel arrests — and lift it the moment those targets are met. But extending the same 30% tariff to the European Union makes no strategic sense.” 

In late May, Trump backed off a threat to slap the EU with a 50% tariff, which would have gone into effect on June 1. 

“Our discussions with them are going nowhere!” President Donald Trump said on his Truth Social platform on May 23, according to the Wall Street Journal. 

On May 25, Trump said in a social media post that he had received a call from European Commission President Ursula von der Leyen requesting that tariffs be delayed as they continue with discussions, according to a report from WSJ. 

In the social media post, Trump said that “it was my privilege to do so.”

“She said we will rapidly get together and see if we can work something out,” Trump told reporters, according to a report by WSJ. 

According to data from the Office of the US Trade Representative, Mexico and the EU are two of the biggest suppliers to the United States. In 2022, Mexico was the No. 2 supplier to the country, with $252.8 billion in goods, only falling second to China’s $536.3 billion. Taken together, the 27 European Union nations supplied $553.3 billion.

“Imposing 30% tariffs on EU exports would disrupt essential transatlantic supply chains, harming businesses, consumers, and patients on both sides of the Atlantic,” said von der Leyen in a statement on Friday. “Few economies in the world match the European Union’s level of openness and adherence to fair trading practices. The EU has consistently prioritized a negotiated solution with the U.S., reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership.”

The U.K. Trade Team smartly secured an early deal.

As I told our major trading partners in April, with @POTUS “usually the first person who makes a deal makes the best deal.”

Congratulations to U.K. leadership for working with us to secure a fair and durable deal for the…

— Treasury Secretary Scott Bessent (@SecScottBessent) July 12, 2025

“As of May 2025, North Carolina’s imports have surged by 40% year-over-year, rising from $33.8 billion to $47.3 billion,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “This sharp increase appears to reflect a strategic acceleration of shipments by firms aiming to get ahead of proposed tariffs. Much of this growth is concentrated among North Carolina’s top trading partners, particularly Mexico and key members of the European Union.”

On July 11, a Mexican delegation from the ministries of economy, foreign Affairs, finance, security, and energy met with the National Security Council (NSC), Office of the US Trade Representative, and US Departments of State, Commerce, and Energy. 

“The delegations discussed security, immigration, border and water management issues, as well as the economic relationship between both countries,” according to a statement released by the Mexican government. “The delegations agreed that the first major task of the permanent binational group will be to work to ensure that before that date we have an alternative that allows us to protect companies and jobs on both sides of the border. It is very significant that starting July 11, we established the necessary pathway and forum to resolve any possibility of new tariffs taking effect on August 1.”

According to data from the Economic Development Partnership of North Carolina (EDPNC), Mexico’s imports increased by 24% year-over-year from $4.3 billion to $5.4 billion. Ireland, Germany, the Netherlands, and Sweden lead the list of top importers among European Union nations.

“The EU is a union of democratic allies, not a border-security problem. And a trade war with them just raises prices for American consumers and businesses while inviting retaliation,” continued Bryson. “Free trade with free people should be the rule; any exception must be temporary, transparent, and laser-focused on measurable results — not a product of presidential impulse.”

EDPNC data indicates that imports from Ireland to North Carolina increased 68% year-over-year from $3.7 billion to $6.2 billion, Germany’s increased 149% year-over-year from $2.8 billion to $6.8 billion, and the Netherland’s was the nation with the highest percentage increase at $157% year-over-year from $1.5 billion to $3.9 billion. Sweden, however, decreased by 21% from $1.9 billion to $1.5 billion. 

“By contrast, Sweden is the only top EU trade partner to experience a decline,” continued Harris. “This drop aligns with a broader trend: vehicle imports into North Carolina, Sweden’s second-largest export, are down 17% year-over-year.”

Last week, Trump sent letters to more than 20 other nations establishing blanket tariffs of 20% to 50%, effective Aug. 1.

Uncertainty makes businesses uneasy. Looking ahead, it is difficult to prepare for the next move in the trade war, bracing for the tariffs set to take effect in a few weeks.

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