U.S. President Donald Trump has issued formal notices to Mexico and the European Union, announcing a sweeping new 30 per cent tariff on all goods imported into the United States from both regions starting August 1, 2025. The announcement, shared on Trump’s Truth Social account, signals a sharp escalation in his administration’s aggressive trade strategy.
In a letter addressed to the President of Mexico, Trump praised the strength of the two nations’ trade relationship but placed blame squarely on Mexico for not doing enough to combat the flow of fentanyl and organized drug cartels. “What Mexico has done is not enough,” the letter read. “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!”
The letter goes on to assert that the United States will impose a 30 per cent tariff on Mexican goods entering the country, regardless of existing sectoral tariffs. Trump also warned that any attempt to avoid the tariffs through transshipment—routing goods through a third country—will result in the higher rate being applied.
Trump made it clear that the only way to avoid the tariffs would be for Mexican businesses to manufacture their goods within the United States. “We will do everything possible to get approvals quickly, professionally, and routinely — in a matter of weeks,” he stated, encouraging companies to shift production to U.S. soil.
A similar message was sent to the European Union, though details on the reasoning for the EU tariffs were not included in the version shared publicly.
The new tariff threats come amid growing global trade instability and rising concern over protectionist U.S. policies under Trump’s second administration. While the White House has defended the moves as necessary for national security and economic fairness, critics warn they could spark retaliatory measures and disrupt already fragile supply chains.
Trump concluded his letter with a warning: if Mexico chooses to retaliate with its own tariffs, the United States will increase its rate beyond the 30 per cent already announced by matching any Mexican hike “dollar for dollar.”
As the August 1 deadline approaches, businesses across North America and Europe are bracing for economic turbulence, while diplomatic tensions rise behind the scenes.