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.