Trump Chose Violence Over the Weekend As He Slams EU and Mexico with 30% Tariff Nuke…

If you’d told me in 2018 that tariffs would become one of the hottest and most talked about trend in 2025, I’d have thrown my phone into the nearest fountain. And yet here we are. Donnie Politics continues to make that six lettered word insufferable as he’s once again dropping threats like mixtapes, announcing over the weekend that he’s eyeing 30% tariffs on imports from Mexico and the European Union starting August 1.

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And let’s just say the usual suspects are losing their minds. Trump made it official with letters posted to Truth Social, addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum. The letters read exactly like you’d expect: formal in tone, yet unmistakably written by a guy who’s still half-rally mode at all times. “The United States of America has agreed to continue working with the European Union, despite having one of our largest Trade Deficits with you,” Trump wrote. “Nevertheless, we have decided to move forward, but only with more balanced and fair TRADE.”

(Source: CNN) 

Now of course, I know some people are rolling their eyes with this, considering there’s something about tariffs every second of nearly every waking moment… God help us… but, the thing is, there’s actual leverage in play. Nearly $976 billion in two-way goods trade with the EU, another $840 billion with Mexico. That’s nothing to scoff at, especially considering that’s the entire bass line of the U.S. supply chain. 

Of course, the EU’s flipping out, warning that these tariffs would blow up transatlantic supply chains and send prices higher for businesses and consumers. Von der Leyen issued her own statement promising “proportionate countermeasures” if things go sideways. And yes, the Europeans are still salty about digital services taxes… Trump’s made it clear he sees those as an unfair shot at U.S. tech giants, taxing revenues whether or not the companies are profitable.

(Source: Reuters) 

However, it’s worth noting the 30% rate is higher than the 20% “reciprocal” tariff Trump floated earlier this year before hitting pause in mid-April. So this isn’t just saber-rattling; it’s an escalation. On the Mexico front, it’s a similar story but with a narcotics subplot. Trump’s letter to Sheinbaum was blunt: Mexico’s helping at the border, but not enough to stop the flow of fentanyl. So, tariffs. And yeah… there’s a logic here, even if it’s the kind of logic that makes economists sweat through their Brooks Brothers.

Mexico’s in a bind because over 80% of its exports go to the U.S. A 30% tariff would ripple through auto parts, electronics, agriculture… you name it. Mexican officials called it “unfair treatment,” while Sheinbaum tried to stay chill, insisting a deal could still be reached. Meanwhile, U.S. investors are looking at the August 1 deadline and asking the same question they did last time Trump ran this playbook: Is this is a real threat or just another Trump special where he threatens 50% tariffs over the weekend, calls off the dogs by Thursday, and then forgets the whole thing by the weekend because some Fox host showed him a shiny object. 

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And yet, the reality here is that regardless of what anyone says, tariffs have become a legitimate revenue stream. U.S. customs duties already topped $100 billion this fiscal year, and with the economy still running hot and stocks at record highs, there’s not a ton of political downside for Trump to keep snappin’ necks and cashin’ checks. The market’s reaction has been relatively muted so far (minus Friday), presumably because traders have seen this movie before. Trump threatens tariffs, partners scream bloody murder, negotiations happen, and sometimes the tariffs get dialed back or vanish altogether.

But, but, but… if the August 1 deadline hits and those tariffs kick in, then chaos may ensue. Higher costs for importers. Higher prices for consumers. Possible retaliation from trading partners. And another round of headlines about global supply chain violence. It’ll get messy AF. 

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For now though, whether we get a plot twist or the same old ending… that’s the billion dollar question. Meaning, keep your heads on the swivel and place your bets accordingly. Depending on what comes out of Trump's mouth next… this week may get a bit volatile. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.