US slaps 30% tariffs on EU and Mexico; EU warns of countermeasures
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The EU had been bracing for the letter from US President Donald Trump after a broadening of his tariff war in recent days.
PHOTO: REUTERS
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WASHINGTON - US President Donald Trump on July 12 imposed a 30 per cent tariff on imports from Mexico and the European Union starting on Aug 1 after weeks of negotiations with the key trading allies failed to reach a more comprehensive trade deal.
The fresh tariffs were announced in separate letters posted on Truth Social on July 12.
Earlier this week, Mr Trump issued new tariff announcements for a number of countries
The EU had hoped to reach a comprehensive trade agreement with the US for the 27-country bloc.
The bloc had been bracing for the letter
The EU had initially hoped to strike a comprehensive trade deal, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realisation it will probably have to settle for an interim agreement and hope something better can still be negotiated.
The bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave in to a one-sided deal on US terms.
European Commission President Ursula von der Leyen said on July 12 that the EU is prepared to take the necessary steps to safeguard its interests if the US proceeds with the 30 per cent tariffs.
In a statement, Dr von der Leyen said the bloc remained ready “to continue working towards an agreement by Aug 1”.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she said.
“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Mr Trump’s cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the US government.
US customs duties revenue shot past US$100 billion (S$128 billion) in the federal fiscal year to June, according to US Treasury data on July 11. REUTERS
