The United States is set to impose tariffs of 30 percent on imports from the European Union, effective August 1st. The announcement, detailed in a letter released Saturday by the President to European Commission President Ursula von der Leyen, establishes a blanket tariff rate separate from existing sector-specific levies. The President reserved the right to modify the measures at a later date.
The stated rationale behind this action centers on concerns regarding the U.S. trade deficit with the EU, specifically referencing imbalances in goods trade and excluding services. The communication also reiterates a call for businesses to relocate production to the U.S. to circumvent tariffs.
Simultaneous with the EU announcement, the President also declared tariffs of the same magnitude on imports from Mexico. The move is expected to significantly impact trade relations and may trigger retaliatory measures.
