US PRESIDENT DONALD Trump has threatened to impose a 30% tariff on the European Union and Mexico, ramping up pressure for deals in his trade wars.
Both sets of duties would take effect 1 August, Trump said in separate letters posted to his Truth Social platform, citing Mexico’s role in illicit drugs flowing into the United States and a trade imbalance with the EU respectively.
In a letter addressed to President of the European Commission Ursula von der Leyen, Trump wrote that the US-EU trade relationship has been “far from reciprocal” resulting in his decision to impose the 30% tariff from the beginning of next month.
He said that if the EU were to retaliate and raise its own tariffs on US goods, the US would add the retaliatory amount to the 30%.
“Please understand that these Tariffs are necessary to correct the many years of European Union Tariffs, and Non-Tariff, policies and Trade Barriers, which cause the large and unsustainable Trade deficits against the United States,” he wrote.
“The Deficit is a major threat to our Economy and, indeed, our National Security!”
The EU tariff is markedly steeper than the 20% levy Trump unveiled in April, as negotiations with the bloc continue.
The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10% on Wednesday, but Trump pushed back the deadline to 1 August just days before the elevated rates were due to take effect.
Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each.
European Commission president Ursula von der Leyen said a 30% levy would “hurt businesses, consumers and patients on both sides of the Atlantic”, but warned that “proportionate countermeasures” could be deployed by the EU in response to the US.
A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic.
— Ursula von der Leyen (@vonderleyen) July 12, 2025
We will continue working towards an agreement by August 1.
At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.
Reacting to the announcement, Taoiseach Micheál Martin said that the EU’s trade negotiators have “full support” and that the current impasse needs to be resolved through “close and respectful” dialogue.
“Like President Ursula von der Leyen, I note the letter from President Trump and the indication that a tariff of 30% may be imposed by the United States on imports from the EU,” Martin said in a statement.
“The EU and the US enjoy the biggest trade and investment relationship in the world. When issues arise between us, they should be resolved by close and respectful dialogue.
“The EU, through the team led by President von der Leyen and Vice-President Šefčovič, has engaged in good faith to reach an agreement on a positive and balanced way forward.”
The Fianna Fáil leader said that the EU and the US “should be partners, not rivals” and that “everyone wins” in a true partnership.
Martin added: “While it has been clear that all options remain on the table, the EU has also been clear that our preference is for a negotiated solution that avoids escalation. That remains the case.”
Tánaiste Simon Harris said that the letter issued by the US is “deeply regrettable:.
He remains in close contact with Von Der Leyen and Šefčovič on the issue.
“There is no necessity to escalate the situation or to further increase the additional tariffs which have been imposed on the EU.” He said that the EU is at the negotiating table and will remain there.
On Monday, Harris is to meet with the US ambassador to Ireland. He said he will continue to engage with colleagues across the EU in the days ahead.
“I also intend on updating colleagues further at the cabinet meeting on Tuesday.”
Sinn Féin similarly condemned the US president’s announcement. The party’s spokesperson Donnchadh Ó Laoghaire called on the Government to engage with the Executive Council in the north on the matter, saying that the all-Ireland economy must be protected.
