<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/donald-trump" rel="" target="" title="President Donald Trump"><span>President Donald Trump</span></a><span> announced he's levying </span><a href="https://www.9news.com.au/world/donald-trump-tariffs-seven-more-letters-sent-out-notifying-increases/3f9c772f-955d-45b0-8b74-b0a8f2eb7687" rel="" target="_blank" title="tariffs"><span>tariffs</span></a><span> of 30 per cent against the European Union and Mexico starting on August 1, a move that could cause massive upheaval between the United States and two of its biggest trade partners.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump detailed the planned tariffs in letters posted to his social media account.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>They are part of an announcement blitz by Trump of new tariffs aimed at allies and foes alike, a bedrock of his 2024 campaign that he said would set the foundation for reviving a US economy that he claims has been ripped off by other nations for decades.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/carolina-wilga--how-german-backpacker-survived-in-wa-outback-and-woman-who-rescued-her/2e86410d-1644-4aa3-b1a7-91e403d571a4" rel="" target="_blank" title="Woman who found missing backpacker reflects on miracle moment"><strong><span>Woman who found missing backpacker reflects on miracle moment</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In his letter to Mexico's leader, President Claudia Sheinbaum, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But he said the country has not done enough to stop North America from turning into a “Narco-Trafficking Playground.”</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump added.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/world/trump-announces-30-tariffs-against-eu-mexico-to-begin-aug-1-rattling-major-us-trading-partners/e4dfbf95-fa37-4d42-964c-3a6e2e79ed17" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump in his letter to the European Union said that the US trade deficit was a national security threat.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote in the letter to the EU.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“Our relationship has been, unfortunately, far from Reciprocal.”</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The letters come in the midst of an on-and-off Trump threat to impose tariffs on countries and right an imbalance in trade.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump in April imposed tariffs on dozens of countries, before pausing them for 90 days to negotiate individual deals.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As the three-month grace period ended this week, Trump began sending his tariff letters to leaders but again has pushed back the implementation day for what he says will be just a few more weeks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If he moves forward with the tariffs, it could have ramifications for nearly every aspect of the global economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/koby-stevens-theft-thieves-steal-a-million-dollars-worth-of-footage-from-eric-bana-and-afl-player/5d6ed7e1-55b8-4799-bf73-ed2d6640018a"><strong><span>Thieves steal Hollywood star and AFL player's documentary footage</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span>EU members and Mexico respond</span></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>European Union Commission President Ursula von der Leyen responded by noting the bloc's “commitment to dialogue, stability, and a constructive transatlantic partnership.”</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” von der Leyen said in a statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Von der Leyen added that the EU remains committed to continuing negotiations with the US and coming to an agreement before August 1.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trade ministers from EU countries are scheduled to meet Monday to discuss trade relations with the US, as well as with China.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>European leaders joined von der Leyen in urging Trump to give negotiations more time and warnings of possible new tariffs on Washington.</span></div></div><div class="styles__Wrapper-sc-2o34ro-0 cmwkBV"><div class="styles__Column-sc-2o34ro-3 jJDKrX"><a href="/content/2025/04/09/08/16/donald-trump-tariffs-panic-on-wall-street-in-pictures-stock-exchange"><img alt="" sizes="(min-width: 1024px) 636px, (min-width: 768px) 396px, 100vw" src="https://imageresizer.static9.net.au/WUnaHpArkMjnIa_du10ehjvRpFU=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2F0b3e528b-2d17-4776-8577-936747dee90a" srcset="https://imageresizer.static9.net.au/WUnaHpArkMjnIa_du10ehjvRpFU=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2F0b3e528b-2d17-4776-8577-936747dee90a 396w, https://imageresizer.static9.net.au/1THpTRPq6O8a2i75a9FC8_BGrOs=/636x358/https%3A%2F%2Fprod.static9.net.au%2Ffs%2F0b3e528b-2d17-4776-8577-936747dee90a 636w"/></a></div><div class="styles__Column-sc-2o34ro-3 jJDKrX"><div class="styles__Headline-sc-2o34ro-4 hpbOlz">Panic on Wall Street as Trump announces new tariffs</div><div class="styles__Button-sc-2o34ro-1 eBjlmW"><a class="styles__ButtonLink-sc-2o34ro-2 hqpklJ" href="/content/2025/04/09/08/16/donald-trump-tariffs-panic-on-wall-street-in-pictures-stock-exchange">View Gallery</a></div></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“With European unity, it is more than ever up to the Commission to assert the Union’s determination to resolutely defend European interests,” French President Emmanuel Macron said in a statement posted on X.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Italian Premier Giorgia Meloni’s office said "it would make no sense to trigger a trade war between the two sides of the Atlantic".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Danish Foreign Minister Lars Løkke Rasmussen told broadcaster DR that Trump was taking a “pointless and a very short-sighted approach". Swedish Prime Minister Ulf Kristersson warned in an interview with SVT that “everyone loses out from an escalated trade conflict, and it will be U.S. consumers who pay the highest price".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump, as he has in previous letters, warned that his administration would further raise tariffs if the EU attempts to hike its own tariffs on the United States.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Mexican government said it was informed during high-level talks with U.S. State Department officials Friday that the Trump letter was coming. The delegation told Trump officials at the meeting it disagreed with the decision and considered it “unfair treatment,” according to a Mexican government statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sheinbaum, who has sought to avoid directly criticising Trump in the early going of her presidency, expressed a measure of confidence during a public appearance on Saturday that the U.S. and Mexico will reach “better terms".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“I’ve always said that in these cases, you need a cool head to face any problem,” Sheinbaum said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/airds-attack-police-investigate-cyclist-hit-with-baseball-bats-near-campbelltown-sydney-new-south-wales/1b9739f4-5c27-4ecb-8167-142224815ac1"><strong><span>Six men on the run after brutal baseball bat attack in Sydney</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>With the reciprocal tariffs, Trump is effectively blowing up the rules governing world trade. For decades, the United States and most other countries abided by tariff rates set through a series of complex negotiations known as the Uruguay round.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Countries could set their own tariffs, but under the “most favoured nation’’ approach, they couldn’t charge one country more than they charged another.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Mexico tariff, if it goes into effect, could replace the 25 per cent tariffs on Mexican goods that do not comply with the existing US-Mexico-Canada free trade agreement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump’s letter did not address if USMCA-compliant goods would still be exempt from the Mexico tariffs after August 1, as the White House said would be the case with Canada. Trump sent a letter to Canada earlier this week threatening a 35 per cent tariff hike.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span>Higher tariffs had been suspended</span></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>With Saturday's letters, Trump has now issued tariff conditions on 24 countries and the 27-member European Union.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The European Union collectively sells more to the US than any other country. US goods imports from the EU topped $553 billion in 2022, according to the Office of the US Trade Representative.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Douglas Holtz-Eakin, a former Congressional Budget Office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks were not taking place over the past three months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He stressed that nations were instead talking amongst themselves about how to minimise their own exposure to the US economy and Trump.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“They’re spending time talking to each other about what the future is going to look like, and we’re left out,” Holtz-Eakin said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span>Potential impact is vast</span></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If the tariffs do indeed take effect, the potential impact on Europe could be vast.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($3 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Europe’s biggest exports to the U.S. were pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lamberto Frescobaldi, president of the Union of Italian Wines trade association, said Trump's move could lead to “a virtual embargo” of his country's wine.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“A single letter was enough to write the darkest chapter in relations between two historic Western allies,” Frescobaldi said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump has complained about the EU’s 198 billion-euro trade surplus in goods, which shows Americans buy more goods from European businesses than the other way around.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, American companies fill some of the gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The US services surplus took the nation’s trade deficit with the EU down to 50 billion euros ($89 billion), which represents less than 3 per cent of overall US-EU trade.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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