U.S. escalates trade war with tariff hikes set for August.
President Donald Trump has announced a sweeping 30% tariff on goods imported from both the EU and Mexico, set to take effect August 1. The move follows failed negotiations and reflects his administration’s hardline stance on trade, building on earlier levies on Brazil and other partners .
European leaders responded swiftly. EU Council President António Costa warned that “tariffs are taxes” that stifle growth and inflation, while Dutch PM Dick Schoof urged unity and diplomacy. The EU has promised to protect its interests and may retaliate through WTO channels .
Global markets dipped as investor confidence waned. Futures markets weakened, the Canadian dollar hit a two‑week low, and concerns spread over supply chains—especially in automotive and agriculture .
Analysts predict that prolonged tariff conflicts could accelerate deglobalization, drive countries toward protectionism, and prompt new trade alliances. Businesses are now reassessing production shifts in response to regulatory uncertainty.
I’m Adedayo Obadina
Talksocialtalks
