US Imposes 30% Tariffs on Imports from Mexico and EU Amid Escalating Trade Tensions

President Donald Trump has announced that the US will impose 30% tariffs on imports from Mexico and the European Union starting August 1, amid escalating trade tensions. This move is part of a series of tariffs announced by the President this week.

The new tax on imports from Mexico and the EU comes in addition to other tariffs already imposed or set to take effect. These include a 35% tariff on goods from Canada, which will begin August 1, as well as 50% tariffs on imports from Brazil and 25% tariffs on goods from Japan and South Korea.

In a letter to Mexican President Claudia Sheinbaum Pardo, Trump claimed that Mexico was not doing enough to stop the flow of illegal drugs, including fentanyl, into the US. "Despite our strong relationship, you will recall the United States imposed tariffs on Mexico to deal with our nation's fentanyl crisis, which caused, in part, by Mexico's failure to stop the cartels who are made up of the most despicable people who ever walked the Earth from pouring these drugs into our country," he wrote. "Mexico has been helping me secure the border, but what Mexico has done is not enough."

In a similar letter to European Union President Ursula von der Leyen, Trump blamed a trade deficit with the EU for the tariffs.

"They're tearing their hair out," said Rita McGrath, a professor at the Columbia Business School. "Absolutely. You know, they won't say so in public, but behind the scenes, how can you plan when, you know, one day it's 125% and the next day it is 200% and then the day after that it's 25%?"

Tariffs are an import tax imposed on companies when products cross international borders. Some economists believe that companies will tend to pass the cost of tariffs on to consumers.

A May survey found that 57% of major companies said tariffs have squeezed their profits, and three in four say they're considering upping prices by at least 5 percent over the next six months.