New escalation in trade war is caused by Donald Trumpwho announced enforcement dictatorial 30% in imports from the European Union (EU) and Mexico, causing irritation to the US allies and increasing uncertainty in international markets.
The new duties were announced by two letters posted by Donald Tram Trump on social media on Saturday (12/07.2025), informing the EU and Mexico that new contributions come into force on August 1, unless new, favorable agreements are reached.
Throughout the week, Trump sent letters to foreign governments, adjusting the proposed levels of duties from April and inviting negotiations again.
The EU hoped to reach a preliminary agreement with the US to avoid imposing new duties, but Trump’s letter reduced the hopes of a last -minute agreement between the two sides. However, he left open the possibility of review:
“If you wish to open your – to now closed – commercial market in the United States and to remove your duties and non -tariffs, we may be considering amending this letter,” he said.
It is recalled that Trump initially announced a 20% duty during the April Liberation Day, which then reduced to 10%, to give a 90 -day margin for negotiations. However, his annoyance with the attitude of the 27 -member Union led him to a 50%duty threat, triggering a new cycle of talks.
Earlier this week, the European Commission had stated that it was approaching a framework agreement with the US after contacting the Commission President Ursula von der Laen, with Trump on Sunday.
The new duties will be general, regardless of sectoral duties that apply to products such as cars and steel. If implemented, they could make the EU less competitive in its exports to the United Kingdom, which left the EU in 2020 and was the first country to trade agreement with the Trump government.
Mexico’s chapter and the battle against fentanyl
In his letter to Mexico’s president, Claudia Sinbaum, Trump acknowledged that the country “helps to protect the border”, but stressed that “not enough”.
He added that if Mexico “succeeds in fighting cartels and fentanyl flow”, then the US may revise duties. “These duties may be amended up or down, depending on our relationships with your country,” he noted.
The letter does not indicate whether the exception to the products that are being traded under the USMCA Agreement (North American Commerce Agreement) will be maintained, which so far provides a 25%exemption. The government had previously stated that it would comply with the exception for Canada.
Mexico is the third country that received a letter without any directly announcing duties for the landmark of July 9, after Canada and Brazil.
Other countries that Trump has recently targeted with proposals for imposing new duties include Japan, South Korea, South Africa, Indonesia, Thailand, Cambodia, as well as Algeria, Libya, Iraq and Sri Lanka.