President Trump has announced a 30% tariff on all imports from the European Union and Mexico, effective August 1, in a move that has stunned markets and alarmed foreign governments.
Trump cited longstanding trade imbalances and concerns over drug trafficking as reasons for the tariffs, arguing that the measures are necessary to protect American interests.
The EU, which had been negotiating for a more moderate solution, now faces the prospect of steep tariffs on its exports, while Mexico is bracing for significant economic fallout. Both trading partners are expected to retaliate, raising fears of a broader trade war.
Analysts warn that the tariffs could disrupt global supply chains, increase costs for consumers, and dampen economic growth worldwide.
