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Trump Announces 30% Tariffs on EU and Mexico, Citing Trade Imbalances and National Security

U.S. President Donald Trump has announced a 30% tariff on imports from the European Union and Mexico, set to take effect on August 1. The move has sparked immediate backlash from both trading partners, who have labelled the action unfair and damaging to diplomatic relations.

The announcement was made on Saturday via Trump’s Truth Social platform, accompanied by letters he sent to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum. In the letters, Trump cited longstanding trade imbalances and national security concerns, calling both trade deficits “a major threat.”

In his letter to President Sheinbaum, Trump criticised Mexico’s efforts to curb drug trafficking and border security, specifically pointing to the fentanyl crisis. While acknowledging that Mexico has taken some steps to help secure the U.S. border, he insisted that these efforts remain insufficient.

“Mexico has still not stopped the cartels, who are trying to turn all of North America into a narco-trafficking playground,” Trump stated. “Starting 1 August, we will charge Mexico a tariff of 30% on Mexican products sent into the United States, separate from all sectoral tariffs.”

Trump added that Mexican companies could avoid the tariff by relocating their manufacturing operations to the U.S. He also said that any significant improvement in curbing drug trafficking could lead to a reassessment of the tariffs.

Mexico responded with a statement on Saturday, expressing disagreement with the new tariffs and calling them “unfair treatment.” President Sheinbaum has not ruled out continued negotiations but reiterated that Mexican sovereignty “is not up for negotiation.”

Meanwhile, the European Union is also facing the same 30% tariff threat. Trump criticised the EU for maintaining what he described as one of the U.S.’s largest trade deficits and accused the bloc of benefiting disproportionately from the trade relationship. “The relationship has been, unfortunately, far from reciprocal,” he wrote.

In response, President von der Leyen warned that the EU is prepared to take “proportionate countermeasures” if necessary. “A 30% tariff on E.U. exports would hurt businesses, consumers, and patients on both sides of the Atlantic,” she said in a statement on social media.

Trump further warned that any retaliatory tariffs imposed by either party would result in an equivalent increase in U.S. tariffs above the initial 30%. Goods transshipped to evade tariffs would also face penalties, he said.

Negotiations between the U.S. and the EU have faltered in recent months. Trump previously threatened a 50% tariff in June, but postponed action after a call with von der Leyen, pushing the decision to the current August 1 deadline.

As of this weekend, the U.S. has now issued or proposed tariff measures against more than two dozen countries, intensifying global trade tensions ahead of the August enforcement date.

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Business

Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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