US President Donald Trump has warned that a 30% tariff on goods imported from the European Union and Mexico will take effect starting 1 August, reports RTE.
This follows several weeks of negotiations with key US trading partners that failed to result in a trade agreement.
In a further escalation of the trade dispute that has frustrated US allies and unsettled markets, Mr Trump unveiled the latest round of tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, which he shared on his Truth Social platform on Saturday, reports RTE.
Both the EU and Mexico criticised the new tariffs as unjust and disruptive, but said they remain committed to working toward a wider trade agreement with the US before the deadline.
The EU and Mexico are two of the US’s largest trading partners.
Mr Trump also sent similar notifications this week to 23 other countries, including Canada, Japan, and Brazil, setting general tariff levels between 20% and 50%, along with a specific 50% duty on copper, reports RTE.
He noted that the 30% tariff is “separate from all sectoral tariffs,” meaning that existing duties — 50% on steel and aluminium and 25% on cars — would remain in place.
The deadline of 1 August provides an opportunity for the affected nations to negotiate arrangements that may reduce or eliminate the new tariffs, reports RTE.
The flurry of correspondence indicates that Mr Trump has reverted to the aggressive trade tactics seen earlier in April, when he introduced multiple retaliatory tariffs that shook markets, though implementation was postponed.
However, with the stock market hitting new highs and the US economy staying strong, Mr Trump appears undeterred in intensifying his trade standoff, reports RTE.
Back in April, the US president pledged to use the 90-day pause to finalise dozens of trade agreements, though only outline pacts with the UK, China, and Vietnam have been achieved so far.
The EU had expressed hopes of securing a comprehensive trade deal with the US covering all 27 member states, reports RTE.
In his letter to the EU, Mr Trump demanded that the bloc eliminate its tariffs, appearing to set this as a condition for any agreement.
“The European Union will allow complete, open market access to the United States, with no tariff being charged to us, in an attempt to reduce the large trade deficit,” he wrote, reports RTE.
Ms von der Leyen warned that the 30% tariffs “would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.”
She added that while the EU will pursue a trade deal, it “will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Mexico’s economy ministry said Saturday that it had been told about the US letter during a Friday meeting with American officials, reports RTE.
“We mentioned at the roundtable that it was unfair treatment and that we did not agree,” the ministry’s statement said, reports RTE.
Taoiseach Micheál Martin expressed hope that talks would continue in the coming weeks, emphasising that the EU and US should be allies, not opponents.
Posting on X, Mr Martin said the EU and US share the world’s largest trade and investment relationship and that “when issues arise between us, they should be resolved by close and respectful dialogue,” reports RTE.
Tánaiste and Minister for Foreign Affairs and Trade Simon Harris called Mr Trump’s decision “deeply regrettable.”
“There is no necessity to escalate the situation or to further increase the additional tariffs which have been imposed on the EU. The Government strongly supports the efforts by the European Commission to reach a mutually beneficial agreement with the US,” Mr Harris said, reports RTE.
He added: “The EU is at the negotiating table and will remain there. Now is the time to redouble our efforts and to seek to achieve positive results in the time available,” reports RTE.
Initially, the EU had aimed to reach a full trade deal, but more recently shifted its focus to securing a broader framework agreement, similar to the one arranged by the UK, leaving key terms to be decided later.
The bloc faces competing pressures, with Germany pushing for a speedy agreement to protect its industries, while France and other members argue against accepting a one-sided deal on US terms, reports RTE.
Jacob Funk Kirkegaard, a senior fellow at Brussels think tank Bruegel, said the contents of Mr Trump’s letter increase the likelihood of EU retaliation, much like the earlier US-China tariff conflict that impacted financial markets.
“US and Chinese tariffs went up together and they came back down again. Not all the way down, but still down together,” he said, reports RTE.
Mr Trump’s recent surge in tariff actions since returning to the White House has started generating substantial revenue, amounting to tens of billions of dollars monthly for the US.
According to US Treasury figures released yesterday, customs duties surpassed $100 billion in the federal fiscal year up to June.
However, these tariffs have also strained US diplomatic ties with its closest allies, reports RTE.
Japanese Prime Minister Shigeru Ishiba remarked last week that Japan must reduce its reliance on the US.
The ongoing tariff conflict has also prompted Canada and several European allies to reconsider their defence relationships with the US, with some now exploring alternatives to American-made weapons systems, reports RTE.
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