US President Donald Trump has announced a steep new tariff of 30% on goods imported from Mexico and the European Union, escalating tensions in negotiations with two of America’s largest trading partners. These tariffs are set to take effect on August 1, 2025, as indicated in formal communications shared via his Truth Social platform.
The rationale behind these tariffs stems from Mr. Trump’s assertion that Mexico has not done enough to combat the flow of illicit drugs into the United States, alongside concerns regarding a trade imbalance with the EU. In response, both Mexico and the EU have expressed strong disapproval. The European Commission warned that these tariffs could disrupt vital supply chains, while Mexican officials characterized the move as an “unfair deal.”
French President Emmanuel Macron voiced “very strong disapproval” of the tariffs and called on European leaders to “resolutely defend European interests.” Since taking office again in January, Trump has adopted a pattern of imposing tariffs on various nations, causing fluctuations in financial markets and raising concerns of a potential global economic downturn.
While the US-Mexico-Canada Agreement (USMCA) provides an exemption for certain products, the new tariffs represent an increase from the previous 25% levy imposed on Mexican goods earlier this year. In a letter to Mexican President Claudia Sheinbaum, Trump stated, “Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States.”
Mexican officials indicated they had communicated their objections during discussions held in the United States. “We mentioned at the table that it was an unfair deal and that we did not agree,” the Mexican economy and foreign ministries said in a joint statement. They are currently exploring alternative measures to protect jobs and businesses on both sides of the border.
President Sheinbaum expressed optimism regarding the negotiations, stating, “We are going to reach an agreement with the US government.” She emphasized that ongoing discussions in Washington would enhance Mexico’s position by the deadline.
The EU tariff, announced to be significantly higher than the 20% tariff proposed in April, has also drawn criticism. Ursula von der Leyen, the European Commission chief, stated that the imposition of a 30% tariff on EU exports would negatively impact businesses and consumers across the Atlantic. “We remain ready to continue working towards an agreement by August 1,” she added, while also indicating that the EU would consider necessary countermeasures if an agreement is not reached.
Italian Prime Minister Giorgia Meloni emphasized the importance of goodwill in negotiations, urging all parties to strive for a fair agreement that strengthens transatlantic ties. “It is crucial to remain focused on the negotiations, avoiding polarizations that would complicate reaching an agreement,” her office stated.
Similarly, the Netherlands’ caretaker Prime Minister Dick Schoof expressed concern over the tariffs, calling them “not the way forward.” He reiterated the EU’s commitment to a unified approach in pursuing a mutually beneficial outcome with the United States.
As discussions continue, Macron has called for the EU to prepare credible countermeasures should the negotiations fail. The EU had been poised to see its tariff level increase from a baseline of 10% earlier this week, but Trump postponed that increase to August 1.
In recent days, Trump has sent letters to over 20 countries detailing updates to tariffs, including a proposed 35% levy on Canada. A US official indicated that exemptions under the USMCA for both Canada and Mexico were expected to remain, although final decisions are pending.
The European Union is also prepared to implement retaliatory tariffs on US goods, valued at approximately €21 billion, following Trump’s earlier tariffs on steel and aluminum imports. European officials have not yet signaled any intention to extend the suspension of these measures, which could be enacted quickly if necessary.
Analysts are closely monitoring the situation, with Josh Lipsky, chair of international economics at the Atlantic Council, stating that the EU’s response will be critical. He characterized this moment as “one of the most precarious” in the ongoing trade tensions, highlighting the uncertainty faced by nations worldwide.
