US President Donald Trump announced on Saturday that starting August 1, 2025, goods imported from both Mexico and the European Union will be subject to a 30% tariff. The letters, posted on his social media platform, cite drug trafficking concerns in Mexico and long-standing trade imbalances with the EU as reasons for the sweeping measures.Days earlier, Trump had intensified global trade tensions by issuing tariff warning letters to over 20 nations, cautioning that elevated import duties will come into effect from August 1, 2025, unless new bilateral trade agreements are secured. These nations included Japan, South Korea, and South Africa of potential tariffs ranging between 25% and 40%. Later he expanded the list by sending letters to eight additional countries, announcing new tariff rates: Brazil (50%), the Philippines (20%), Brunei (25%), Moldova (25%), Algeria (30%), Libya (30%), Iraq (30%), and Sri Lanka (30%).

Mexico tariffs: ‘Not enough’ done to stop cartels

Addressing Mexican President Claudia Sheinbaum, Trump said the United States could no longer ignore Mexico’s failure to fully stop the flow of fentanyl and other narcotics into the country. While acknowledging that while it had been helping “secure the border,” he insisted, “what Mexico has done is not enough.”“Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground. Obviously, I cannot let that happen!” Trump wrote.As a result from August 1, all Mexican goods entering the US will face a 30% tariff, in addition to any existing sector-specific levies. Trump also warned against efforts to bypass the tariff system through transshipment, noting that such goods would “be subject to that higher Tariff.”Trump also hinted at broader frustrations, writing, “The flow of Fentanyl is hardly the only challenge we have with Mexico, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States.”

EU tariffs: ‘Far from reciprocal’

In the letter to European Commission President Ursula von der Leyen, Trump expressed frustration over persistent trade deficits with the EU. “Our relationship has been, unfortunately, far from Reciprocal,” he wrote, accusing the bloc of long-standing protectionist policies. “We have had years to discuss our Trading Relationship with The European Union, and have concluded that we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non- Tariff, Policies and Trade Barriers.”From August 1, a 30% tariff will apply to all EU products entering the US, separate from other sector-specific tariffs. Trump noted that while the new rate is “far less than what is needed” to close the trade gap, it is a first step toward “balanced and fair TRADE.”He also cautioned against retaliation, “If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.”He said that the 30% figure is still lower than what is required to “eliminate the Trade Deficit disparity we have with the EU.”In both letters, Trump framed the tariffs as a correction of economic “injustices” that pose “a major threat to our Economy and, indeed, our National Security.”

Trump’s ‘no tariff’ conditions

In the letters, Trump also mentioned that there “will be no tariff” in case the EU and Mexico or the companies within decide to manufacture in the US, assuring that the country will assist in getting quick approvals for the same.He wrote, that in case there is a decision “to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely-In other words, in a matter of weeks.”