On July 12 (EST), former U.S. President Donald Trump announced via his social media platform “Truth Social” that starting August 1, 2025, the United States will impose a 30% tariff on imports from Mexico and the European Union.
Faced with this high-stakes tariff threat from a traditional ally and trade partner, both the EU and Mexico have shown signs of retreat even before formal negotiations began—unlike Canada and Brazil, which responded with firm resistance to similar U.S. tariff threats.
Mexico Calls Tariffs “Unfair,” Moves to Negotiate
On July 12 local time, Mexico’s Ministry of Foreign Affairs and Ministry of Economy issued a joint statement labeling the proposed U.S. tariff hike as “unfair treatment.” The Mexican government has initiated talks with the United States, aiming to protect cross-border businesses and jobs.
A bilateral working group was officially established on July 11 to tackle shared issues including security, migration, and economic policy. During the initial talks, both parties agreed that the top priority is to identify “an alternative solution that safeguards employment and enterprises on both sides of the border” before the tariff takes effect.
EU Extends Response Deadline, Faces Internal Backlash
On July 13, European Commission President Ursula von der Leyen confirmed that the EU had received a formal letter from the U.S., stating the new tariffs will take effect unless a negotiated resolution is reached.
In response, the EU has extended its suspension of countermeasures until early August. Meanwhile, preparations for retaliatory actions continue. However, von der Leyen’s stance has sparked criticism from within the EU.
Bernd Lange, Chair of the European Parliament’s Committee on International Trade, questioned the wisdom of another delay. Sharing the news on social media, he expressed skepticism:
“Is it right to keep stepping back? Trump may achieve even more than he has so far just by escalating threats.”
Lange insisted that negotiations and retaliatory measures are not mutually exclusive, and urged the EU to initiate its first round of countermeasures against the U.S.
Germany Warns of Dire Consequences
German Chancellor Friedrich Merz also spoke on July 13, warning that the 30% tariff would “overshadow everything” and severely impact Germany’s export industry. He expressed hope that a solution could still be reached before the August 1 deadline.
