Trump threatens 30% tariff on Mexico, EU

Allies vow countermeasures as experts warn against slowing global economy

US President Donald Trump on Saturday threatened to impose a 30 percent tariff on imports from Mexico and the European Union starting on Aug 1, as experts warn that trade disputes and policy shifts are putting the global economy under strain.

In an escalation of a trade war that has angered allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social platform on Saturday.

Both partners swiftly slammed the new duties, with the EU warning they could disrupt supply chains while Mexico branded them an "unfair deal".