Trump, sting on Europe: 30% tariffs from August

'Full support' for the European Commission's efforts in the negotiations from Palazzo Chigi, which hopes for 'a fair agreement that can strengthen the West as a whole, since - particularly in the current scenario - it would make no sense to trigger a trade clash between the two sides of the Atlantic'.

Even Mexico criticised the threat of such high tariffs, calling it 'unfair treatment'.

To the EU, forewarned of the letter, Trump objected to the gap in the trade deficit due to trade barriers, tariffs and non-tariffs, calling it "a serious threat to our economy and, indeed, to our national security". Mexico was also blamed for the drug trade, acknowledging that the country has 'helped secure the border but what it has done is not enough.

Mexico has not yet stopped the cartels that are trying to turn all of North America into a narco-trafficking playground'.

Just on Friday, Mexican President Claudia Sheinbaum had criticised the 'lack of consistency' of the US administration, which declares cartels to be foreign terrorist organisations but then signs plea agreements with their leaders, as just happened with one of El Chapo's sons.

For Brussels it is a real cold shower, coming after months of negotiations and frequent phone calls between Trump and von der Leyen. In recent days, moreover, the tycoon seemed to have changed his tone with the EU, stating that Europe was recently treating the US well, moving from a 'very hard' to a 'very kind' position.

The threatened tariff rate, on the other hand, is well above the 10% expected, although several EU sources believe that the tycoon's is his usual negotiating tactic.

This week Trump sent similar letters to 23 other trading partners, including Brazil, Japan and South Korea, establishing generalised tariffs ranging from 20% to 50%, as well as a 50% tariff on copper, from 1 August. But he is already beginning to see the fruits of the first months of tariffs, at least from his point of view.

US tariff collection rose again in June, exceeding USD 100 billion for the first time in a fiscal year and helping to generate a surprising USD 27 billion budget surplus for that month.

Tariffs have become the fourth largest source of revenue for the federal government: within about four months, their share has more than doubled from 2% to about 5%.

What remains to be seen, however, in addition to the reaction of the stock exchanges on Monday, are the feared increases in domestic consumption and the effects on inflation: unknowns that have so far prompted the Fed not to cut the cost of money, as the president would like.