Trump News Today July 12, 2025 – In a bold move, former U.S. President Donald Trump has announced a 30% tariff on imports from the European Union and Mexico, set to begin on August 1. This decision has reignited global trade tensions and could disrupt international markets and supply chains. The announcement, made via Trump’s Truth Social account, marks a major escalation in his protectionist trade agenda.
Trump News Today: What is the New Tariff Announcement?
Trump has issued formal letters to the EU Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, warning them of upcoming tariffs. These are not limited to just steel or aluminum — they are broad-based, across multiple sectors.
“The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us,” Trump wrote.
This latest wave of tariffs will exist alongside earlier levies — 50% on steel and aluminum, 25% on auto imports, and 50% on copper. The move signals a return to Trump’s aggressive stance from April 2025, when similar trade threats caused market unrest.
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How the EU and Mexico Reacted
The EU has sharply criticized the decision. Ursula von der Leyen stated:
“The 30% tariffs would disrupt essential transatlantic supply chains, harming consumers and businesses alike.”
Mexico’s Economy Ministry declared the action unfair and politically motivated. During a meeting with U.S. officials, they expressed disagreement, labeling the decision “unjustified.”
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What’s Behind the Tariff Threat?
Trump has linked the tariffs to two main concerns:
- U.S. Trade Deficit: Trump claims the U.S. is unfairly treated in global trade, and the tariffs will help restore balance.
- Fentanyl Crisis: He cited continued fentanyl smuggling from Mexico, accusing them of failing to stop drug cartels: “Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground.”
Despite recent collaborations with Mexico on border control, Trump emphasized the need for stricter actions.
Market Impact and Investor Sentiment
Despite the alarming headlines, the U.S. stock market remains steady. Analysts believe Trump is using a negotiation tactic rather than preparing for an immediate trade war. With elections looming, these measures might be aimed more at domestic voters than international partners.
However, supply chain disruptions and retaliatory tariffs could trigger inflation and global instability if negotiations fail.
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What Comes Next?
Affected countries have until August 1 to renegotiate terms with the U.S. Experts expect intensive talks in coming weeks. The EU is considering countermeasures, including:
- Legal complaints through the WTO
- Retaliatory tariffs on U.S. products
- Strengthening trade ties with other global partners like China and India
Germany is urging a quick resolution to protect its export-heavy industries, while France insists on resisting any one-sided agreements.
Has This Happened Before?
Yes. In April 2025, Trump announced tariffs under “Liberation Day” policies but delayed them due to backlash. With revenue from customs duties exceeding $100 billion this fiscal year, these moves also provide political leverage.
Japan, Canada, and EU allies are reevaluating their defense and trade dependencies on the U.S., signaling growing strategic drift.
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Q1: Why did Trump impose the 30% tariff now?
To pressure the EU and Mexico into new trade agreements and reduce the U.S. trade deficit.
Q2: Is the fentanyl issue a key reason?
Yes. Trump blamed Mexico for failing to stop fentanyl trafficking across the southern border.
Q3: What are the chances these tariffs will take effect?
Negotiations are expected, but the threat remains if no progress is made before August 1.
Q4: How could this affect India or global markets?
It may lead to global supply chain shifts, offering opportunities to non-tariffed countries like India.
Q5: Will the EU retaliate?
Most likely. The EU has signaled that it will prepare proportional countermeasures.
Donald Trump’s return to tariff diplomacy could reshape global trade once again. While the short-term effects are unclear, long-term disruptions may emerge in U.S.–EU–Mexico relations. Investors, manufacturers, and governments worldwide are now on alert as the August 1 deadline approaches.
