Starting August 1st, goods originating from Mexico and the EU will be subject to a 30% import tariff upon entering the US. Goods transshipped to avoid these tariffs will face even higher rates.

As in previous letters, Trump stated that businesses in these economies would be exempt from the tariffs "if they decide to build factories or manufacture products in the US". He also warned that if Mexico and the EU retaliate, their new tariffs will "increase correspondingly".

Former US President Donald Trump during a meeting at the White House on 7/7. Photo: AP

Former US President Donald Trump during a meeting at the White House on 7/7. Photo: AP

Over the past few days, Trump has sent tariff letters to various trading partners. To date, 25 countries have received such notices. The new tariffs range from 20% to 50%, with most being lower than or equal to the rates announced on 2/4. Many countries have indicated they will continue negotiations with the US to reach trade agreements before the new tariffs take effect on August 1st.

Ha Thu (Reuters)