President Trump Proposes 30% Tariffs for EU and Mexico Aug. 1

President Trump on Saturday, July 12, announced on Truth Social that he sent letters to both European Commission President Ursula von der Leyen and Mexico President Mexican President Claudia Sheinbaum warning both that his administration is prepared to impose 30% tariffs on U.S. imports from the EU and Mexico, starting 12:01 a.m. ET on Aug. 1.

While both the EU and Mexico are negotiating with the U.S., President Trump expressed dismay with the lack of progress.

Numerous letters to countries were sent by President Trump, and posted for public viewing through Truth Social posts, since Monday, July 7, warning that his administration is prepared to implement varying tariffs, effective 12:01 a.m. ET on Aug. 1, unless suitable trade deals are reached.

U.S. Treasury Secretary Scott Bessent said in a Truth Social post on Saturday, July 12, the U.K. “smartly secured an early deal,” adding “Let this be a lesson to other countries – earnest, good faith negotiations can produce powerful results that benefit both sides of the table, while correcting the imbalances that plague global trade.”

Russia Given 50-Days to Stop Fighting with Ukraine, or Face 100% Secondary Tariffs

President Trump on July 14 said he has given Russia a 50-day ultimatum to end its war with Ukraine or face the economic impact of secondary tariffs of 100% placed on its products.

“We are very, very unhappy with [Russia], and we’re going to be doing very severe tariffs if we don’t have a deal in 50 days,” President Trump said in video comments posted to X.

The secondary tariffs, if enacted, would apply to all countries that purchase Russian products. Details about what the tariffs would cover have not yet been given by the Trump Administration.

U.S. Trade Deal Reached with Indonesia

The Trump Administration announced July 15 that it had reached a trade deal with Indonesian President Prabowo Subianto which opens the entire country to U.S. goods without tariffs.

In a Truth Social post, President Trump said Indonesia has committed to purchasing $15 billion in U.S. energy products, as well as $4.5 billion in U.S. agricultural products and a commitment to purchased 50 Boeing aircraft. Indonesian products entering the U.S. will also be subject to a 19% tariff, and if these products are transshipped from a higher tariff country, then that tariff will be added to the tariff which Indonesia is paying.

Trump Administration Imposes Tariffs on Mexican Tomato Imports

The Trump Administration on July 14 imposed a 17% tariff on Mexican tomato imports, effectively ending a nearly three-decade old agreement between the U.S. and Mexico to monitor this trade.

According to economists at the University of Arizona, the retail price at U.S. grocery stores for Mexico-origin tomatoes could be 10% higher. The U.S. had imported 70% of its tomatoes from Mexico.

The Commerce Department will be issuing an antidumping duty order, resulting in duties of 17.09% on most tomato imports from Mexico. Antidumping duties are calculated to measure the percentage by which Mexican tomatoes have been sold in the U.S. at unfair prices, the Commerce Department said.  The Commerce Department on April 14 announced its intention to withdraw from the 2019 Agreement Suspending the Antidumping Investigation on Fresh Tomatoes from Mexico, with termination effective in 90 days, or July 14. The Tomato Suspension Agreement between the U.S. and Mexico has been in place since 1996.

Survey: U.S.-China Relations and Tariffs Are Primary Challenges for U.S. Companies

The U.S.-China Business Council (USCBC), a private, nonpartisan, nonprofit organization of around 270 American companies that do business in China, on July 16 released the results of its annual Member Survey, “with frayed US-China relations, mutually destructive tariffs, and lost market share among the leading concerns.”  “What companies need immediately from ongoing trade talks, however, is an end to indiscriminate tariffs and the implementation of sensible policies that enable American companies to compete in China on a level playing field — and, of course, predictability,” USCBC President Sean Stein said in a statement.

Survey highlights include:

• Companies again identified U.S.-China relations as the greatest business challenge, and tariffs jumped from eighth to second place amid renewed trade friction.
• Around 40% of companies report negative effects from U.S. export control policies, with many experiencing lost sales, severed customer relationships, and reputational damage in China due to the intensifying perception that U.S. firms are unreliable suppliers.
• 32% of companies reported losing market share in China over the last three years, while nearly 70% are concerned about losing market share in the next five years, reflecting concerns about China’s industrial policies shutting American firms out of the market.
• While 82% of companies reported profits in 2024, fewer than half are optimistic about the future, reflecting concerns over tariffs, deflation, and policy uncertainty. Fewer than half plan to allocate new investments to China this year, down sharply from last year.
• Overcapacity is spilling into new sectors, including health care and consumer goods. Insufficient domestic demand and overcapacity remain the top constraints on profitability.
• Over 80% of respondents say they invest in China to serve the domestic market, while nearly all report that they cannot remain globally competitive without their China operations.

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IEEPA Tariff Background

President Trump on Saturday, Feb. 1, issued Executive Orders, under the authority of the International Emergency Economic Powers Act (IEEPA), to impose at midnight starting Feb. 4, 25% tariffs on imports from Canada (except energy products tariffed at 10%) and Mexico, and an additional 10% on imports from China. President Trump delayed the imposition of those tariffs, except for China, to March 4, after discussions with the leaders of Mexico and Canada. By Friday, Feb. 7, the President issued an amendment to his original executive order that allows Chinese goods to use de minimis until such time as the Department of Commerce notifies the President that “adequate systems are in place to fully and expediently process and collect tariff revenue applicable.”

On Feb. 10, President Trump announced 25% tariffs on certain steel and aluminum imports entering the U.S. Those tariffs took effect on March 12. The 25% duty rate applies to previously covered steel and aluminum products and derivatives including those produced in the previously excluded countries and on the new derivatives listed in the recently published steel and aluminum Annexes.

This tariff announcement was followed on Feb. 13 by President Trump’s announcement that the White House will commence a comprehensive investigation to determine “the equivalent of a reciprocal tariff with respect to each foreign trading partner” on other countries with existing tariffs on U.S. goods. The Office of the U.S. Trade Representative (USTR) on Feb. 20 announced that it seeks comments from the public regarding reciprocal tariffs, which are due by March 11.

On March 6, the President amended his IEEPA tariffs of 25% on Mexico and Canada. The effective date is 12:01 a.m. ET, March 7. Any Mexican or Canadian origin goods that qualify for free entry under the USMCA will not be subject to the additional 25% duties. In addition, potash from either country that does not qualify for duty free treatment under the USMCA will be subject to a 10% duty (in lieu of the 25% duty).

The White House Executive Order issued April 2 stated that all articles imported into the U.S. will be subject to an additional ad valorem rate of duty of 10 percent. The rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on April 5, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on April 5 and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. ET on April 5 shall not be subject to such additional duty. President Trump on April 2 also signed an Executive Order to eliminate duty-free de minimis treatment for low-value imports from China, effective May 2 at 12:01 a.m. ET. On April 9, however, President Trump issued a 90-day pause on the reciprocal tariffs and lowered them to 10%.

President Trump on April 29 issued an Executive Order that most notably relieves automakers whose cars and light trucks are assembled in the U.S. from potentially facing stacked tariffs for auto part imports. The auto parts import tariffs were scheduled to take effect at 12:01 a.m. ET on May 3.

The U.S. and Chinese governments after meeting in Geneva, Switzerland, over the weekend of May 10-11 on Monday, May 12,  announced a joint plan to begin deescalating tariffs, starting May 14. The statement said that both governments will be “moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect,” following the imposition of significant tariffs on each other’s products. The Trump Administration, which called the agreement an “historic trade win for the United States,” outlined in this May 12 fact sheet what both countries will do, while continuing negotiations over the next 90 days.

President Trump issued a proclamation ensuring that tariffs on aluminum and steel will increase from 25% ad valorem to 50% ad valorem effective 12:01 a.m. ET on June 4.

The Trump administration on July 2 reached a trade deal with Vietnam in which goods imported into the U.S. will be subject to a 25% tariff and a 40% tariff if transshipped, while U.S. goods exported to Vietnam will be admitted with zero tariffs.

President Trump on July 7 authorized letters to be sent to numerous countries, stating that if suitable trade agreements are not reached by Aug. 1, then they will be subject to additional tariffs. The White House letters follow President Trump’s Executive Order issued April 2 which stated that articles imported into the U.S. from numerous countries will be subject to an additional tariff. On April 9, however, President Trump issued a 90-day pause, or July 9, on the tariffs. President Trump on July 9 Truth Social also said he will impose a 50% tariff on copper imports into the U.S. on Aug. 1 to stimulate domestic production.