TL/DR –
President Donald Trump has announced the US will impose 30% tariffs on imports from Mexico and the European Union, 35% tariffs on goods from Canada, 50% tariffs on imports from Brazil, and 25% tariffs on goods from Japan and South Korea, all starting from August 1. In letters to Mexican President Claudia Sheinbaum Pardo and the European Union President Ursula von der Leyen, Trump justified the tariffs by stating Mexico hadn’t done enough to stop the flow of illegal drugs into the US and due to a trade deficit with the EU. A survey revealed that 57% of major companies said tariffs have squeezed their profits, with three quarters considering raising prices by at least 5% over the next six months.
Trump Announces 30% Tariffs on Mexico, EU Imports from August
President Donald Trump declared on Saturday that starting August 1, the U.S. will impose a 30% tariff on imports from Mexico and the European Union.
These new import taxes are among many levied by Trump this week, with 35% tariffs on Canadian goods announced on Thursday.
Other trade allies targeted include Brazil, with a 50% tariff, and Japan and South Korea, both with a 25% tariff. These tariffs will also apply from August 1.
In correspondence with Mexican President Claudia Sheinbaum Pardo, President Trump expressed dissatisfaction with Mexico’s efforts in curbing the inflow of illegal drugs, specifically fentanyl, into the US.
RELATED STORY | Trade war deepens: Trump targets Canada with new import taxes
Trump argued that despite good relations, Mexico had to do more to control the drug cartels.
In a similar letter to European Union President Ursula von der Leyen, Trump cited a trade deficit with the EU as the reason for the tariffs.
These hasty tariff changes have reportedly caused strain for U.S. firms, with Rita McGrath, a professor at the Columbia Business School, describing it as a frustrating situation for companies.
As an import tax, tariffs burden companies when products cross international borders, often leading them to pass on the cost to consumers.
According to a May survey, 57% of major companies are feeling the pinch on their profits due to tariffs.
And 75% are contemplating increasing prices by at least 5 percent in the next six months.
—
Read More US Political News