Trump Announces 30% Tariffs on EU and Mexico, Citing Trade Imbalance and Fentanyl Crisis

What’s new:

President Donald J. Trump has issued formal letters to both the European Commission and the President of Mexico declaring the United States will impose a 30% tariff on all products entering from the European Union and Mexico starting August 1, 2025.

Why it matters:

The letters—posted publicly on Truth Social—signal a dramatic escalation in Trump’s trade strategy as part of his broader push to end what he called “unsustainable Trade Deficits” and stop “the flow of fentanyl” from Mexico.

Details:

• The letter to European Commission President Ursula von der Leyen states that the EU has maintained “long-term, large, and persistent Trade Deficits” with the U.S. caused by “Tariff and Non-Tariff, Policies and Trade Barriers.”
• Trump warns that unless the EU eliminates these barriers or manufactures goods within the United States, all goods will face a 30% tariff.
• In his letter to Mexican President Claudia Sheinbaum, Trump ties the new tariffs to Mexico’s “failure to stop the Cartels” and the fentanyl crisis, which he called “a major threat to our National Security.”
• Both letters include a condition: the tariffs may be adjusted—either “upward or downward”—based on future cooperation.

What they’re saying:

Between the lines:

The move is likely to spark tensions with U.S. allies just ahead of major global economic summits. The EU is expected to respond, and Mexico may pursue diplomatic options or countermeasures. Trump’s public linkage of tariffs to drug policy could also draw international legal scrutiny.

What’s next:

Trump’s administration is preparing to implement these tariffs from August 1, 2025. Any retaliation by the EU or Mexico could trigger further tariff hikes, as noted in the letters. Observers say this signals Trump’s intention to fully overhaul U.S. trade policy under his presidency.