Following President Donald Trump’s announcement on Saturday to impose a 30% tariff on imports from Mexico, the Mexican government said they are working with U.S. to secure a trade deal before the Aug. 1 deadline.
Meanwhile, European Union (EU) officials warned on Monday that retaliatory tariffs are still on the table if they cannot reach a trade deal with the U.S. before the deadline.
The EU commission, which negotiates trade deals on behalf of its 27 member states, delayed its own planned counter tariffs on U.S. goods that were set to begin on Monday to Aug. 1.
In 2024, U.S. commerce with the EU reached $975.9 billion, according to the U.S. Trade Representative.
“The EU remains ready to react and that includes robust and proportionate countermeasures if required and there was a strong feeling in the room of unity,” Denmark’s foreign minister, Lars Løkke Rasmussen, said after a meeting with EU commission leaders in Brussels on Monday, according to The Hill.
Claudia Sheinbaum, President of Mexico, said progress has been made in U.S. bilateral trade discussions regarding security and combating fentanyl trafficking.
“There is a practically finalized agreement with the United States government, coordinated by the State Department on security issues. Sovereignty and the territoriality of each of us are clear, and coordination and collaboration schemes are established,” Sheinbaum said during her daily morning news conference.
“There’s very important progress. Some minor details remain. We want it to be part of a global agreement, not just security on the one hand and trade on the other, but truly a general agreement with the United States government.”
Trump’s 90-day pause on the April 2 “reciprocal” tariffs to more than 90 trading partners was set to end Wednesday, but he signed an executive order last week delaying Wednesday’s tariff deadline to Aug. 1.
Over the past week, the Trump administration has sent a flurry of letters to dozens of U.S. trade partners informing them that higher import tariffs could kick in if no new trade agreements are reached within the next three weeks.
Trump said he will impose a 35% tariff on the majority of imports from Canada starting next month, as well as 25% levies on products from South Korea and Japan.
In his letter to Sheinbaum, Trump cited fentanyl as the main reason for the tariffs.
Sheinbaum said her government has been working to curb the flow of fentanyl into the U.S., while also pressing White House officials to slow down shipments of illegal guns into Mexico.
Mexico was the top U.S. trade partner in May at $74.5 billion in cross-border commerce, according to Census Bureau data.
“There are also issues related to fentanyl and security; in that case, an agreement has already been reached, always within the framework of respect for our sovereignty,” Sheinbaum said.
“They also have to do their part … We’re doing our part; they have to do theirs too. We’ve insisted on controlling the flow of weapons into Mexico and on stopping those who traffic drugs in their territory. Collaboration must be mutual.”
Trump has so far reached three deals — with the United Kingdom, China and Vietnam — although the agreements with China and the UK have not been finalized yet.
Related: Trump will charge 35% tariff on Canadian imports starting Aug. 1
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