President Donald Trump on Saturday announced 30% tariffs on goods from the European Union and Mexico starting Aug. 1.
In a letter on Truth Social, Trump criticized Mexico for its alleged failure to stop the transport of fentanyl into the U.S. In a separate letter, Trump said the U.S. runs a high trade deficit with the EU.
In response, the EU scheduled retaliatory tariffs on U.S. goods to take effect on Monday. However, it announced Sunday that it would delay the tariffs in hopes of reaching a trade deal with the U.S. by the end of the month.
The new tariffs align with Trump’s end to the pause on “reciprocal” tariffs, which were scheduled to end on July 9 but will now resume on Aug. 1.
On July 8, Trump said in a Truth Social post that there would be “no extensions” granted after the Aug. 1 deadline.
The president has been sending letters to several nations saying their tariff rates will be raised unless an agreement can be reached.
Trump sent letters to South Korea and Japan warning he would raise tariffs on each country’s goods to 25% unless they can reach a deal by Aug. 1.
The National Association of Home Builders said increased tariffs on South Korea and Japan “would have a ripple effect on the housing sector.” Specifically, tariffs would impact electronic products used in homes and construction machinery used to build homes.
The 10% tariff rate applied to all countries in April remains in effect.
