Former U.S. President Donald Trump has announced plans to impose 30% tariffs on all goods imported from the European Union and Mexico, starting August 1, 2025. The move, revealed via two official letters posted to Truth Social, marks a significant escalation in Trump’s campaign to reshape U.S. trade policy through protectionist measures.
Trade Deficits and Border Security at the Center
Trump justified the proposed tariffs by citing the U.S. trade deficit with both blocs, calling it a “major threat to our Economy and National Security.” In his letter to Mexican President Claudia Sheinbaum, Trump also accused Mexico of failing to adequately stop the flow of illegal immigration and fentanyl trafficking, despite recent cooperation on border security.
He acknowledged that Mexico had made some progress, but added, “The efforts have not gone far enough.”
Impact on U.S. Allies
The threat extends to two of America’s most critical trade partners. In 2024, over $800 billion in combined trade occurred between the U.S., EU, and Mexico. European Commission President Ursula von der Leyen expressed concern over the economic consequences, stating that such tariffs would disrupt key transatlantic supply chains and harm businesses, consumers, and patients across both regions.
She emphasized the EU’s continued commitment to a negotiated solution and warned that countermeasures were being considered if the tariffs are implemented.
Ongoing Negotiations with Brussels
For weeks, EU officials have been engaged in discussions with their U.S. counterparts to avert a broader trade conflict. Talks have centered around reducing existing U.S. tariffs on European cars (25%), steel and aluminum (50%), and other goods. The EU has proposed increasing purchases of American LNG and military equipment to reduce its trade surplus with the U.S.
Despite these efforts, Trump’s administration has remained firm in its demand for greater concessions.
Tariffs as a Negotiating Tactic?
EU diplomats suggest the 30% tariff threat may be intended as a negotiating tactic, rather than a fixed decision. Ambassadors from the EU’s 27 member states are expected to meet for an emergency session on Sunday to discuss the possible repercussions and formulate a response.
Mexico’s Position
Mexico has previously been granted limited exemptions under the 2020 U.S.-Mexico-Canada Agreement (USMCA), which allowed about 87% of Mexican exports to enter the U.S. tariff-free in the first quarter of 2025. However, the country will still be affected by a 50% tariff on steel and aluminum, as well as potential future levies from ongoing national security investigations targeting industries like chips, pharmaceuticals, and aerospace.
Mexican officials have not yet issued a formal response to the latest threats.
A Broader Trade War Looms?
Trump’s new tariff threats come amid a broader shift in U.S. trade posture. In the past week alone, he has threatened more than 20 countries with new tariffs, while announcing plans for a 50% tariff on copper.
Italian Prime Minister Giorgia Meloni urged de-escalation, stating that “a trade war across the Atlantic makes no sense” and called on both sides to find a fair agreement that strengthens the Western alliance.
With the August 1 deadline approaching, global markets and trade partners will be closely watching whether negotiations can avert a new wave of economic disruption and retaliatory tariffs.
