Trade action marks a key component of Trump’s 2024 economic platform
Former President Donald Trump announced on Saturday a new round of 30% tariffs on imports from the European Union and Mexico, effective August 1. The decision, communicated through letters shared on social media, is part of a broader trade policy initiative aimed at reshaping the U.S. economy and addressing trade imbalances.
In a letter to Mexico’s president, Trump acknowledged cooperative efforts on border security and narcotics control but stated that further actions were needed. A separate letter to the EU cited the long-standing U.S. trade deficit as a national security issue, calling for a shift away from what he characterized as non-reciprocal trade dynamics.
EU and national governments respond with caution and preparedness
European Commission President Ursula von der Leyen affirmed the bloc’s commitment to stability and constructive dialogue while noting that the EU would take proportionate countermeasures if necessary. The Italian government expressed support for the EU’s negotiation efforts and emphasized the importance of avoiding a trade conflict between transatlantic allies.
Bilateral trade volume at stake amid escalating tensions
In 2024, trade between the U.S. and EU totaled roughly $2 trillion, with European exports including pharmaceuticals, automobiles, aircraft, and beverages. While the EU holds a trade surplus in goods, U.S. service exports—such as cloud computing and financial services—help balance the overall trade relationship.
Talks continue in hopes of reaching an agreement that could prevent the tariffs from taking effect. Meanwhile, businesses and governments on both sides are evaluating potential economic impacts.
