President Donald Trump’s sudden announcement of a 30% tariff on all imports from the European Union and Mexico, set to begin August 1, has rattled global markets and raised the stakes in ongoing trade disputes.
Trump defended the tariffs as a necessary response to unfair trade practices and insufficient cooperation from Mexico on security issues. The EU, which had been negotiating for lower tariffs, now faces significant economic challenges.
The tariffs are expected to impact a wide range of industries, from European luxury goods to Mexican manufacturing. Both the EU and Mexico are preparing to retaliate, raising concerns about a potential global trade war.
Economists warn that the new tariffs could disrupt supply chains, drive up prices for consumers, and slow economic growth in affected regions.