WASHINGTON D.C: Former US President Donald Trump has escalated trade tensions by announcing a 30 percent blanket tariff on all goods imported from the European Union and Mexico, effective August 1. He warned that higher tariffs could follow if either region retaliates.

In letters shared on his platform, Truth Social, Trump also criticised Mexico’s handling of border security, claiming it hasn’t done enough to stop drug cartels. The move marks a renewed push in his trade war, following earlier announcements of a 50 percent tariff on copper imports and a 20 percent tariff on all imports, with a possible 35 percent rate for Canadian goods starting next month.

The EU, America’s largest trading partner, exported over $605 billion in goods to the US last year, mainly pharmaceuticals, vehicles, and machinery. Trump has threatened a 200 percent tariff on imported drugs, though not immediately.

European Commission President Ursula von der Leyen said the EU would defend its interests, possibly with countermeasures. Mexico, a critical supplier of US fruits and vegetables, exported $505 billion worth of goods to the US in 2024. Tariffs could raise produce prices quickly due to their perishable nature.