US slaps 30% tariff on EU, Mexico

President Donald Trump yesterday said major US trading partners Mexico and the European Union would face a 30 percent tariff starting next month, ramping up pressure for deals in his trade wars.

Both sets of duties would take effect August 1, 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.

Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.

The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted.

Canada earlier received a similar letter setting out 35 percent tariffs on its goods. A US official earlier told AFP that the USMCA exemption was similarly expected to remain for Canada.

The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April.

The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to August 1 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.

Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies, and the latest letter suggests talks will carry on. The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminium imports earlier this year, and they are suspended until July 14.