Mexico has vehemently rejected Trump’s move, labeling it an “unfair deal” and asserting that its national sovereignty remains non-negotiable. Meanwhile, European Commission President Ursula von der Leyen has warned of “proportionate countermeasures” if the tariffs proceed, though both parties have also expressed a willingness to continue negotiations to avert a full-blown trade conflict. These reactions highlight the deep concern within key trading partners about the economic fallout from such protectionist measures.

Trump’s rationale for the tariffs stems from claims of long-standing, persistent trade deficits with the EU and insufficient efforts from Mexico to curb drug trafficking. In a letter to von der Leyen, he explicitly cited the U.S. goods trade deficit with the EU, which stood at $235.6 billion (€202 billion) in 2024, as a “major threat” to U.S. economy and national security. This deficit figure underscores the scale of the economic imbalance cited by the U.S. administration.

The broader implications are significant. Beyond the immediate impact on specific goods, leaders across the EU, including French President Emmanuel Macron and Germany’s Association of the Automotive Industry, have voiced strong disapproval, warning of rising costs and further instability in global trade. This move follows earlier tariff threats against other key U.S. partners like Japan, South Korea, Canada, and Brazil, indicating a broader shift in U.S. trade policy.