By Jude Sheerin | BBC News, Washington

The European Union and Mexico have strongly criticised former U.S. President Donald Trump’s threat to impose sweeping 30% tariffs on their exports starting August 1.

Labeling it an “unfair deal,” Mexico reaffirmed its commitment to national sovereignty, while European Commission President Ursula von der Leyen warned of “proportionate countermeasures” if the U.S. moves forward. Despite their firm stance, both parties emphasized their willingness to continue negotiations with Washington.

Trump, however, has doubled down. In formal letters to Mexico and the EU, he warned that any retaliatory tariffs would prompt even higher U.S. duties—beyond the proposed 30%. In a Fox News interview, he claimed the tariffs were generating “hundreds of billions of dollars,” despite international backlash.

Trade Tensions Rise

Trump’s recent letter to von der Leyen blamed the EU for long-standing trade imbalances, calling the relationship “far from reciprocal.” He cited the bloc’s tariffs and trade barriers as justification for the move.

The White House also announced new tariffs on imports from Japan, South Korea, Canada, and Brazil, escalating tensions with key U.S. allies. In total, the Trump administration has now threatened or proposed new trade terms for 24 countries and the EU’s 27 member states.

Europe Responds

European leaders expressed deep concern. Von der Leyen reaffirmed the EU’s openness to negotiation but made it clear that Brussels would not hesitate to act if provoked. “We will take all necessary steps to safeguard EU interests,” she said, citing the bloc’s commitment to fair trade.

French President Emmanuel Macron voiced “strong disapproval” of Trump’s move, while European Parliament trade chair Bernd Lange called it “a slap in the face.” Lange urged the EU to enact countermeasures as early as Monday.

Some EU leaders sought a diplomatic path. Italy’s Prime Minister Giorgia Meloni said she remained hopeful for “a fair agreement,” warning that a transatlantic trade war would benefit no one. Dutch Prime Minister Dick Schoof urged EU unity in pursuing a “mutually beneficial” resolution.

Meanwhile, Germany’s automotive industry raised alarms over the risk of rising costs for carmakers, calling the threat of further escalation “regrettable.”

Mexico Holds Firm

Mexico’s President Claudia Sheinbaum remained cautiously optimistic. Speaking Saturday, she said she believed a deal with the U.S. was still within reach. However, she drew a firm line: “Our sovereignty is not up for negotiation.”

Trump’s letter to Mexico accused the country of failing to adequately combat drug trafficking and border issues. Yet, it was unclear whether Mexico’s trade under the USMCA (United States-Mexico-Canada Agreement) would be exempt from the proposed tariff hikes.

While the White House confirmed Canadian goods covered under the USMCA would be exempt, no such clarity was given for Mexico.

Broad Trade Strategy

The Trump administration’s recent moves form part of a broader, aggressive trade agenda. Earlier this year, White House trade adviser Peter Navarro set a goal of striking “90 deals in 90 days.” While preliminary agreements have been announced with the UK and Vietnam, many negotiations remain ongoing.

As trade talks stall and tariff threats escalate, the world watches to see if compromise can be reached—or if a full-blown trade war looms.