Rising Tensions: US Announces Steep Tariffs on EU and Mexican Imports

The United States is set to impose a 30% tariff on imports from both the European Union and Mexico, announced by President Donald Trump through his social media platform on Saturday. The new tariffs will take effect starting August 1, heightening tensions between the involved parties.

DAN O'BRIEN, Chief Economist at the Institute of International and European Affairs, expressed concerns on X over the significant impact this tariff could have on trade between the US and EU. O'Brien cautioned that any retaliatory tariffs from the EU could lead to a further escalation of the economic struggle, potentially resulting in severe trade disruptions.

The announcement has sparked widespread concern, with the trade community closely monitoring possible reactions from the European Union. The implementation of such substantial tariffs could signal the beginning of a larger economic conflict, underscoring the complicated nature of international trade relations in the current political climate.

(With inputs from agencies.)