The U.S. will impose a 30% tariff on goods from the European Union and Mexico effective Aug. 1, President Trump said in letters to the leaders of two of America’s largest and most important trading partners.

The WSJ’s Gavin Bade, Kim Mackrael and Santiago Pérez write that these latest missives in Trump’s global trade wars up the ante in intensive talks aimed at lowering the tariffs before the first of next month. Trump made U.S. trade deficits a focus of the letters, saying he would consider lowering the tariffs if the EU offers complete, open market access with no tariffs charged to the U.S., and if Mexico does more to combat drug cartels. The newly announced duties would replace Trump’s existing 10% blanket tariffs on most goods from the EU. They also would replace the 25% tariff on Mexican goods that don’t comply with the U.S.-Mexico-Canada free-trade agreement.

It wasn't clear whether USMCA-compliant goods would still be exempt from the Mexico tariffs after Aug. 1, as the White House has said would be the case with Canada. Trump threatened Canada with a tariff hike earlier this week.

• Mexico and Europe are grappling with how to respond to a U.S. administration using trade policy for a range of political and economic aims, finding neither anger nor appeasement are working. (WSJ)
• Trump is betting the threat of reducing access to the U.S. consumer will force nations to capitulate on his political priorities, but he risks rebuke by the courts and political blowback if prices rise. (WSJ)
• Economists expect stronger growth and job creation, lower risk of recession and cooler inflation than they did three months ago, according to a quarterly survey of professional forecasters. (WSJ)
• A grace period of at least a year more than offset concerns about the 200% tariff proposed by Trump on pharmaceutical imports, buoying drugmakers’ stocks. (WSJ)
• Nintendo’s new Switch 2 videogame machine uses a rare-earth magnet, highlighting the company’s vulnerability to potential Chinese supply-chain disruptions. (WSJ)
• U.S. imports of apparel from China fell to a 22-year low in May amid Trump’s trade war. (Sourcing Journal)

The White House maintains a running list of U.S.-based investments it says have been spurred by Trump’s commitment to revitalizing American industry.

Nearly 80 projects are included, from factories to data centers to a liquefied natural gas facility. The Wall Street Journal’s John Keilman and Harriet Torry examined the manufacturing-related projects on the list that involved investments of at least $1 billion. Of those 33 projects, some involve R&D, equipment and machinery investments that are in line with the companies’ typical spending. Others were in the works well before Trump was elected.

A White House spokesman said Trump has been “a critical catalyst converting hypothetical discussions into firm investment commitments.”

• Ford Motor recorded 88 safety recalls through the end of June, more in the first six months of 2025 than any automaker ever has in an entire calendar year. (WSJ)
• Rio Tinto has a “strong desire” to invest in U.S. copper mining after Trump announced plans to impose a 50% tariff on imports of the metal. (Bloomberg)

A plan in Colorado for a giant gas station with a grinning beaver mascot has ignited an epic battle over the soul of the American West, the WSJ’s Jim Carlton writes. The fight over a new Buc-ee’s has descended into accusations of harassment, slashed tires, crude name-calling and vicious private texts made public. Opponents—who fear symptoms of sprawl such as harm to water and wildlife—have a powerful ally: billionaire media mogul John Malone. Backers see a 30% tax revenue boost needed for pricey deferred maintenance and other needed projects. A final vote on the development is expected this summer.

A surprise surge in hiring helped pull Canada’s unemployment rate down for the first time since January. (WSJ)

The U.K. economy unexpectedly contracted for a second consecutive month in May, with GDP down 0.1% from the month before. (WSJ)

Used electric-vehicle sales topped 100,000 for the first time in the second quarter, a bright spot as new EV sales have fallen in recent months. (WSJ)

Global oil supply is set to rise three times faster than demand this year, the International Energy Agency said in its monthly report. (WSJ)

Kraft Heinz is planning to break itself up with a spin-off of a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion. (WSJ)

Suppliers to Chinese EV makers say they are bearing the brunt of a spiraling price war, with manufacturers demanding lower prices and dragging out payment periods. (WSJ)

Volkswagen and Chinese partner SAIC will close their joint manufacturing plant in Nanjing as they restructure to produce next-generation electric vehicles in the country. (WSJ)

Nissan Motor has started talking with Honda Motor about potentially using an underused U.S. factory to produce large Honda vehicles. (Nikkei Asia)

BASF cut its guidance for the year, citing geopolitical uncertainty and U.S. tariff tensions causing currency volatility. (WSJ)

The U.S. Maritime Administration added about 850 miles of inland waterways to the Marine Highway Program, which expands eligibility for federal grants for shipping-development projects. (The Maritime Executive)

Amazon Air Cargo signed an agreement with South Korea’s Air Premia for a service called the “Aloha Express” from Incheon to Honolulu, and on to the mainland U.S. (Air Cargo News)

Syria signed an $800 million agreement with DP World to redevelop its ports infrastructure and logistical services. (Reuters)

The Department of Homeland Security partially terminated a contract with Eastern Shipbuilding for two offshore patrol cutters because of delays and cost concerns. (gCaptain)

The cost to insure vessels bound to pass through the Red Sea is surging following renewed attacks by Yemen’s Houthi militants. (Supply Chain Brain)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.