Trump Imposes 30% Tariffs on Mexico, EU Starting August 1

President Donald Trump announced a 30% tariff on all goods imported from the European Union and Mexico, effective August 1, 2025, citing persistent trade deficits with the EU and ongoing drug trafficking issues linked to Mexico as primary reasons. Trump emphasized that despite Mexico's efforts to secure the border, the country has not done enough to stop fentanyl and cartel activities, threatening North America’s security. The tariffs follow a broader pattern of tariff hikes on major trading partners, including Canada, Brazil, Japan, and South Korea, as well as a 50% tariff on copper imports. The EU, which had sought a zero-for-zero tariff agreement on industrial goods, now faces internal divisions with Germany pushing for swift negotiations and France advocating for balanced terms amid retaliatory tariff plans targeting U.S. goods. Economists warn these measures could reduce the U.S. GDP by 0.7% and the EU’s by 0.3%, while U.S. customs revenue has surged above $100 billion monthly due to escalating tariffs. Trump’s administration views trade deficits as national security threats and is prepared to increase tariffs further if retaliatory actions escalate, intensifying tensions in transatlantic and North American trade relations.