President Donald Trump announced new 30 percent tariffs on the European Union and Mexico that will take effect on August 1.
In a letter to Mexican President Claudia Sheinbaum, Trump claimed his tariffs on Mexico are due to fentanyl crossing the border. However, the number was actually less than 5 percent crossing the border in April 2025.
“Mexico has been helping me secure the border, BUT what Mexico has done is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America in a Narco-Trafficking Playground,” Trump wrote in the letter.
Mexico did not have new tariffs on Trump’s so-called “Liberation Day” but they will see prices rise with the new tariffs.
The letters come as the trade deals that Trump administration officials had said would be signed have failed to materialize, leaving the President with nothing to show.
The United States imports vehicles, machinery and electrical equipment, alongside agricultural products such as fruits, vegetables, and beer from Mexico. When Trump’s tariffs go into effect, those items will likely see price increases by their respective companies.
Trump said EU will also face a 30% tariff due to the United States’ trade deficit. The European Union exports pharmaceutical products and mechanical appliances to the U.S.
According to the Office of the U.S. Trade Representative, the U.S. goods trade deficit with the European Union was $235.6 billion in 2024.
Trump said there would be no tariffs on manufacturing companies that decide to build products in the U.S.
European Commission President Ursula von der Leyen responded to Trump’s letter, saying that “few economies in the world match the European Union’s level of openness and adherence to fair trading practices.”
von der Leyen added she “will take all necessary steps to safeguard EU interests,” including retaliatory tariffs “if required.”
“We will continue working towards an agreement by August 1,” she said. “At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.”
