Date: July 2025
Image: Shipping containers at a European port. Click to view full size.
The European Union (EU) and Mexico have strongly criticised US President Donald Trump's announcement of a 30% tariff on all imports from their countries, set to take effect on August 1. The plan was unveiled in a televised statement, where Trump claimed the tariffs are necessary to protect American industries and reduce trade deficits.
Mexico calls tariff an 'unfair deal'
In Mexico City, Foreign Minister Alejandro Ruiz denounced the proposed tariffs as an "unfair deal" and a direct challenge to Mexico's economic sovereignty. "This is a serious violation of our agreements," he said. "Mexico will never accept pressure or intimidation tactics." Officials confirmed that Mexico is preparing retaliatory measures targeting billions of dollars in US agricultural products and manufactured goods, including corn, pork, and auto parts.
EU Warns of proportionate countermeasures
European Commission President Ursula von der Leyen issued a firm response in Brussels: "If these tariffs come into force, the European Union will take proportionate countermeasures. We will defend our industries, our workers, and the rules-based international trading system." EU officials have already begun consultations with member states about potential duties on US vehicles, consumer electronics, and industrial machinery.
Potential economic impact
Analysts warn that the tariffs could disrupt supply chains and raise prices for consumers in all three economies. According to the International Chamber of Commerce, the measures could reduce global trade growth by as much as 0.5% over the next year, adding to inflation pressures and slowing economic recovery.
"This is a classic lose-lose scenario," said Dr. Carla Fischer, a trade economist based in Berlin. "Higher costs for businesses, fewer exports for farmers, and more expensive goods for families."
Business Reaction
Major industry groups, including the US Chamber of Commerce and the European Automobile Manufacturers Association, quickly voiced concern. In a joint statement, they urged all sides to return to negotiations. "We cannot afford another trade war that hurts workers and consumers," the statement read.
Trump administration's position
The White House defended the tariffs as a necessary step to force fairer trade terms. A senior administration official said the US has "waited long enough" for concessions and that the president remains committed to reducing the trade deficit. "We are prepared to negotiate, but we will not hesitate to act," the official said.
Outlook and Next Steps
Despite the strong statements, both the EU and Mexico indicated they remain open to dialogue to avoid a further escalation. Von der Leyen stressed, "Our door remains open to constructive negotiations, but we will not be bullied." Mexico's foreign ministry confirmed plans to send a delegation to Washington in the coming weeks for further talks.
As the August deadline approaches, businesses and consumers are bracing for potential disruption in the flow of goods across borders.
Report by WSN 024