Trump imposes 30% tariff on imports from Mexico, EU starting Aug 1

In separate letters posted on Truth Social, President Trump cited persistent trade deficits and unfair practices as justification for the tariffs.

Addressing Mexico’s President Claudia Sheinbaum, Trump stated the tariffs would apply to all Mexican goods entering the US, excluding items manufactured domestically in the US. He also warned that any retaliatory tariff from Mexico would result in a proportional increase above the 30 per cent base rate.

In a parallel letter to European Commission President Ursula von der Leyen, Trump criticised the EU’s tariff and non-tariff barriers, calling the trade relationship “far from reciprocal”. He justified the 30 per cent rate as being “far less than what is needed” to correct the trade imbalance with the EU.

President Trump indicated that the new tariffs would not apply to goods produced within the US by Mexican and EU firms. He emphasised that his administration would streamline the approval process for such investments, promising quick, professional, and routine clearances—potentially within just a few weeks—to encourage domestic manufacturing.

The new tariffs are in addition to existing sector-specific duties and will also apply to goods transhipped through third countries to avoid the higher levy.

ALCHEMPro News Desk (KD)