Tariff war: Trump slaps 30% duties on Mexico and EU over drug threats, trade deficit

US President Donald Trump on July 12 imposed a 30% tariff on imports from Mexico and the European Union starting on August 1 after weeks of negotiations with the key trading allies failed to reach a more comprehensive trade deal. The fresh tariffs were announced in separate letters posted on Truth Social today.

In his letter to Mexico’s leader, Trump acknowledged the country’s cooperation in curbing undocumented migration and fentanyl trafficking into the United States but warned that more must be done to keep North America from becoming a “Narco-Trafficking Playground.”

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump added.

In a separate letter to the European Union, Trump argued that the US trade deficit posed a national security risk.

“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote in the letter to the EU. “Our relationship has been, unfortunately, far from Reciprocal.”

The European Union, anticipating Trump’s move, had been preparing for new duties on the United States’ largest trade and investment partner after a recent escalation in the tariff war.

Initially, the EU aimed for a comprehensive deal with zero-for-zero tariffs on industrial goods. However, months of strained negotiations have left the bloc considering an interim agreement as it hopes for a broader settlement in the future.

Meanwhile, Trump has signaled further escalation with other trading partners. He plans to impose a 35% tariff on Canadian goods from August 1, despite the two countries nearing a self-imposed deadline for a new trade deal.

He has also slapped global tariffs of 50% on aluminium and steel imports, and 25% on all cars and trucks not built in the US. In addition, a 50% tariff on copper imports is set to take effect next month.