Trump intensifies trade war with threat of 30% tariffs on EU, Mexico

The European Union (EU) retaliatory tariffs on the United States (US) exports have been delayed again, European Commission President, Ursula von der Leyen, has announced.
 
The counter-measures, which were due to start tomorrow, came in response to U.S. President Donald Trump’s initial import taxes on steel and aluminium.
 
EU’s retaliation, which would have hit € 21 billion worth of U.S. goods, was first suspended in March. This break has been extended until early August, von der Leyen told a press conference, yesterday.
 
Trade ministers of EU member states are expected to meet in Brussels today to discuss how to respond.This came after Trump wrote a letter to von der Leyen announcing his plans to impose 30 per cent tariffs on EU imports from August 1.
 
Von der Leyen told journalists yesterday: “The U.S. has sent us a letter with measures that would come into effect unless there is a negotiated solution; so, we will, therefore, also extend the suspension of our countermeasures until early August.
 
“At the same time, we will continue to prepare for the counter-measures so we’re fully prepared.” In an escalation of a trade war that has angered U.S. allies and rattled investors, Trump announced the latest tariffs in separate letters to the European Commission President and the Mexican President, Claudia Sheinbaum, that were posted on his Truth Social media site on Saturday.
 
The EU and Mexico, both among the largest U.S. trading partners, responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the U.S. for a broader trade deal before the deadline.