President Donald Trump on Saturday announced that the United States will charge 30% tariff on all imports from European Union and Mexico as trade deals with the largest trading partners remained elusive.
Since both the European Union and Mexico export huge amounts of everyday use items to the United States, high tariffs could cause price-hike and put additional inflationary pressure on American consumers and importers.
The 27-member European Union is the largest U.S. trading partner, shipping $605 billion worth of goods annually. The U.S. imports drugs, pharmaceuticals, autos, aircraft and heavy machinery from the European Union.
The U.S. imported goods worth $505 billion last year including vegetables and fresh fruits. America imports 69% of vegetables and 51% of fresh fruits from its southern neighbor.
In separate letters sent to the two countries, which were posted on Truth Social platform, Trump warned of even higher tariffs if the E.U. or Mexico reacted with new tariffs on U.S. exports.
The EU’s executive commission dealing with trade issues said leaders of member countries remained hopeful of reaching a deal with the United States.
However, if the two sides fail to strike a deal, the EU said it was it would levy tariffs on American imports including beef, auto parts and Boeing airplanes.
Both the EU and Mexico criticized the tariffs while saying they would continue to negotiate a trade deal with Washington before the August 1 deadline.
The U.S. president announced a 10% baseline tariff on imports from around the world, and in addition announced reciprocal tariffs on all trading partners, calling the commercial imbalance as unfair to the United States.
Later, Trump paused the tariff enforcement for 90 days to give negotiations a chance to sort out the differences toward trade deals with the countries.
So far, the U.S. has sent letters to 23 countries that they would face higher tariffs if a deal is not reached with Washington by August 1.
Follow for more: Twitter (X) | Facebook | Instagram | LinkeIn
