The U.S. will impose 30 percent duties on goods from the European Union and Mexico on August 1. Donald Trump posted the notification letters on Truth Social.

The duties would be levied separately from sectoral duties that apply to steel or auto imports, for example. In the letters, Trump said he would consider lowering duties if the EU gave the U.S. "full, open market access without levying duties" and if Mexico did more to fight drug cartels. At the same time, Trump threatened to raise duties if the EU or Mexico decided to retaliate. 

Context

The imposition of the 30 percent duty came as a surprise to the European Union, notes Forbes. Brussels had been negotiating with the Trump administration on an agreement that would have kept the 10 percent rate on U.S. imports. The publication speculates that the EU, like Mexico, will continue negotiations until the new duties go into effect in hopes of striking a deal.

This article was AI-translated and verified by a human editor

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