US President Donald Trump on Saturday said that goods imported from Mexico and the European Union will face a 30 per cent tariff rate starting August 1. He made the announcement through a letter posted on Truth Social, a social media platform.
Trump announced the tariffs on two of the United States’ biggest trade partners. In his letter to Mexico‘s leader, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States.
But he said the country has not done enough to stop North America from turning into a “Narco-Trafficking Playground.” He also cited a trade imbalance with the European Union in his letter.
The EU had hoped to reach a comprehensive trade agreement with the US for the 27-country bloc.
Just three days ago, Trump had sent formal letters to the heads of states of seven countries – Algeria, Brunei, Iraq, Libya, Moldova, Philippines, and Sri Lanka. The move, framed by Trump as a step toward “balanced and fair TRADE,” imposes duties ranging from 25 per cent to 30 per cent and includes stern warnings against retaliation.
Earlier this week, Trump had issued new tariff announcements for a number of countries, including Japan, South Korea, Canada and Brazil, as well as a 50 per cent tariff on copper.
Japan and South Korea were both warned of a 25 per cent levy on a broad list of goods. Other countries, including Indonesia, Bangladesh, Thailand, South Africa, and Malaysia, are facing duties ranging from 25 per cent to 40 per cent.
According to the White House, these actions are part of “tailor-made trade plans” crafted for each country.
European stocks had declined on renewed threat from Trump’s tariffs
On Friday, European stocks dropped as Trump ramped up his trade rhetoric and threatened blanket tariffs of 15 per cent to 20 per cent on most countries, according to a Bloomberg report.
The Stoxx Europe 600 Index fell 1 per cent by the close, the biggest drop in three months. The healthcare as well as consumer products and services sectors declined the most, with tariff-sensitive luxury names such as Kering SA and Moncler SpA sliding.
Banks were also among the main laggards. DNB Bank ASA dropped 8.8 per cent after the lender reported lower profit for the second quarter as income from lending fell short of analysts’ estimates. Energy outperformed, with BP Plc shares higher after analysts said an encouraging second-quarter update will lift earnings expectations, the report said.
Tariff-exposed stocks including autos are back in focus after Trump threatened a 35 per cent tariff on some Canadian goods and raised the prospect of increasing levies on most other countries.
Tariff talks between Bangladesh and US end without conclusion
The three-day second-round tariff talks between Bangladesh and the United States have ended without conclusion, an ANI report said.
“The two countries have agreed on some more issues on the third and final day of the second round of trade talks. However, some issues still remain unresolved. Both sides have decided that inter-ministerial talks will continue between them. Then representatives of the two countries will sit down for talks again,” Bangladesh Chief Adviser’s Press Wing said in a statement on Saturday.
“The discussion can be held both virtually and face-to-face. It is expected that the time and date will be fixed very soon. The Trade Advisor, Secretary and Additional Secretary will return to the country tomorrow. If necessary, they will go again,” it added.
“Following three days of talks, Commerce Adviser Sheikh Bashir Uddin and Security Adviser Khalilur Rahman are optimistic that a positive position can be reached within the stipulated time,” the statement said.