Goods imported from both the European Union and Mexico will be subject to a 30 percent tariff starting August 1, US President Donald Trump said in an announcement he posted on his Truth social network on Saturday.
Trump posted a letter on social media that he sent to European Commission President Ursula von der Leyen.
"We have discussed our trade relationship with the European Union for years and have concluded that we must abandon these long-standing, large, and persistent trade deficits that are caused by your tariff and non-tariff policies and trade barriers. Unfortunately, our relationship has been far from reciprocal. Starting August 1, 2025, we will charge the European Union a tariff of only 30% on products shipped to the United States, separate from all sectoral tariffs," the US president writes in the letter.
He further pointed out that companies that choose to manufacture goods in the US will avoid tariffs. On the contrary, these companies will receive faster permits.
"Please note that the 30% figure is much less than what is needed to close the gap in the trade deficit we have with the European Union," he adds.
The US president further warned in the letter that if the Union decides to take measures, there will be a reaction."Any number you increase the measures by will be added to the 30% we charge you." He considers the tariffs necessary to correct customs policies and the trade deficit with the US.
"This deficit poses a major threat to our economy and, in fact, to our national security!" he complains.
"Trump's threats of new tariffs, which have still not been fulfilled with various justifications, characterize his first six months as US president as little more than that. The key worrying element now is the fact that he is planning, for example, higher tariffs on the EU and Japan than the reciprocal tariffs from early April. However, it is possible that Trump is just bargaining to create space for further negotiations, or is increasing pressure in this regard, or is simply bluffing," says Trinity Bank's chief economist Lukáš Kovanda.
Negotiations did not yield results
The milestone for the negotiations between the European Union and the United States was to be July 9. The Union was represented in the negotiations by the European Commissioner for Trade and Economic Security, Maroš Šefčovič, who faced strong pressure in his work. Donald Trump initially threatened 50% tariffs on imports from the Union. However, he later announced tariffs of 30%. These were to affect all countries that had not concluded a trade agreement with the United States. The final date for such an agreement was to be the beginning of July. The agreement was ultimately negotiated by Britain and Vietnam, and Trump also spoke about negotiations with China.
Maroš Šefčovič has not commented publicly on the negotiations. In an interview with TASR in June, he said that the negotiations are taking place almost every day and are very difficult, as they deal with several important issues, such as the import of steel and aluminum or the import and export of cars.
"We are looking for solutions that would provide the United States with sufficient opportunities to resolve the most pressing issue for them, the trade deficit in goods. We are looking at individual tariff lines and from the EU side we want this agreement to be as balanced as possible. It takes a lot of time, it really is a lot of work," he explained to TASR at the time. Šefčovič also added on July 9 that the Commission had made significant progress in negotiations on the agreement.
Wrapping up a productive week of work in Washington, DC. It was good to meet with @USTradeRep@jamiesongreer, Secretary @howardlutnick, and @SecScottBessent.
— Maroš Šefčovič🇪🇺 (@MarosSefcovic) July 4, 2025
Heading back to Brussels - the work continues. Our goal remains unchanged: a good and ambitious transatlantic trade deal.
Automakers have faced tariffs of 25% on imports to the United States since April, up from the original 2.5% — a total of 27.5% — that were applied to imports into the United States. The commission has been negotiating a reduction of that, for example, for automakers that make vehicles in the United States and export them to other countries, sources familiar with the negotiations told Reuters. In that case, companies could get a credit for the value of their exports from the United States, which they could then apply to imports into the European Union, the U.S. source said.
The impact of tariffs on Slovakia was also confirmed by Economy Minister Denisa Saková (Hlas-SD).
"The latest information we have is that there is already a decline in orders for vehicles from these two companies for the third production quarter and this is already starting to have a negative impact," she said after the government meeting on July 4. The loss of imports to the US was to affect two car manufacturers in Slovakia, Volkswagen and Jaguar Land Rover. She also warned that moving production to the US would be lengthy and difficult, and could take up to 6 years. Saková confirmed at the time that the negotiations had not progressed much.
The 27-nation bloc has been divided over how to handle the trade deal. Germany has pushed for a swift deal to protect its industry. Other members, such as France, have protested, saying negotiators should not give in to the United States' demands.
The bloc had initially hoped for a comprehensive deal that would include zero tariffs on industrial goods. But as negotiations stalled, it scaled back demands and hoped for at least a temporary deal. Three union officials told Reuters that Trump's threats were a bargaining tactic.
The tariffs will also hit Mexico at the same level. In a letter to Mexican President Claudia Sheinbaum, he criticizes Mexican drug cartels, which he accuses of importing drugs into the United States. He says he imposed the tariffs on Mexico to stop the fentanyl crisis. According to him, the crisis is caused by"Mexico's failure to stop cartels, which are made up of the most despicable people to ever walk the Earth, from pouring these drugs into our country."
He further accused the country of turning all of North America into a drug trafficking playground.
"If Mexico succeeds in confronting the cartels and stopping the flow of fentanyl, we will consider adjusting this letter. These tariffs may be adjusted up or down depending on our relationship with your country," he concludes.
Trump announced new tariffs on several countries earlier this week, including Japan, South Korea, Canada and Brazil, as well as a 50% tariff on copper.
Europe is ready to defend itself
European Commission President Ursula von der Leyen responded to the tariff announcement on the social network X. She warned that the tariffs would harm businesses and consumers not only in Europe but also in the US.
"We will continue to work towards reaching an agreement by August 1. At the same time, we are ready to protect EU interests with appropriate countermeasures," she wrote. Šefčovič did not immediately respond, but shared von der Leyen's post on social media.
"Few economies in the world match the European Union in its openness and adherence to fair trade practices. The EU consistently favours a negotiated solution with the US, reflecting our commitment to dialogue, stability and a constructive transatlantic partnership," the European Commission said in a statement.
European Commission spokeswoman Paula Pinh confirmed that the EU knew about Trump's proposal for 30 percent tariffs in advance, before it was officially published. However, she did not specify how Von der Leyen and Šefčovič knew about it in advance, TASR writes.
Hungarian Foreign Minister Péter Szijjártó criticized the move on social media as a mistake by the president and the entire commission in Brussels. He called the current European Commission incompetent.
"This incompetence has already caused great damage and harm to Europe in recent years, and now we have another failure: the inability of Ursula von der Leyen and the Brussels Commission to negotiate a favorable customs agreement with the American administration, which is once again being felt by the European economy, European companies and the people of Europe," he said in an angry status. However, he omitted the fact that Slovak European Commissioner Maroš Šefčovič led the negotiations with the Americans on behalf of the EU.
Czech Prime Minister Petr Fiala, in response to Trump's tariff hike, said that the Czech Republic continues to support dialogue and a diplomatic solution."We must react unitedly and resolutely to protect our economic interests and ensure fair trade for our companies," ČT24 quoted Fiala as saying.
