President Donald Trump has posted two letters on his social media platform announcing new tariffs on the European Union and Mexico that will take effect on Aug. 1.

Trump will impose a 30% tariff on Mexico due to fentanyl crossing the border, he said in a letter to Mexican President Claudia Sheinbaum.

“Mexico has been helping me secure the border, BUT what Mexico has done is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America in a Narco-Trafficking Playground,” Trump wrote in the letter.

Mexico did not face a new tariff on April 2, the day of Trump’s so-called “Liberation Day” tariff rollout. There remains a 25% tariff on non-USMCA-compliant goods from Canada and Mexico, as well as a 50% tariff on steel, aluminum and derivative products.

The United States mainly imports vehicles, machinery and electrical equipment, alongside agricultural products such as fruits, vegetables, beer and spirits from Mexico.

Trump said the EU will also face a 30% tariff as a result of the United States trade deficit, in a letter addressed to European Commission President Ursula von der Leyen.

The EU, one of the largest trading blocs with the U.S., primarily exports pharmaceutical products and mechanical appliances to the U.S.

According to the Office of the U.S. Trade Representative, the U.S. goods trade deficit with the European Union was $235.6 billion in 2024, a 12.9 % increase over 2023.

Trump has long touted productive conversations that left him “extremely satisfied” regarding a trade deal with the EU; however, at one point, he once threatened tariffs as high as 50%.

In his letters, Trump again promised that there would be no tariffs on manufacturing companies that decide to build in the U.S.

The European Commission president responded Saturday saying the 30% tariff “would hurt businesses, consumers and patients on both side of the Atlantic.”

“We will continue working towards an agreement by August 1,” von der Leyen said. “At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.”

President Donald Trump on Saturday targeted Mexico and the European Union with steep 30 percent tariffs, dramatically raising the stakes in already tense negotiations with two of the largest US trading partners.

Both sets of duties would take effect August 1, Trump said in formal letters posted to his Truth Social platform. The president cited Mexico’s role in illicit drugs flowing into the United States and a trade imbalance with the EU as meriting the tariff threat.

The EU swiftly slammed the announcement, warning that it would disrupt supply chains, but insisted it would continue talks on a deal ahead of the deadline.

Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.

But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements.

So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China.

The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed on Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted.

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump said in his letter to Mexican President Claudia Sheinbaum. “Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States.”

The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April, as negotiations with the bloc continue.

“Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” European Commission chief Ursula von der Leyen said in a statement, in reply to Trump’s letter to her.

“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she added.

The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to August 1.

Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each, including a 35 percent levy for Canada. A US official has told AFP that the USMCA exemption was expected to remain for Canada.

Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies.

The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminum imports earlier this year, and they are suspended until July 14.

European officials have not made any move to extend the suspension but could do it quickly if needed.

“Despite all the movement toward a deal, this threat shows the EU is in the same camp of uncertainty as almost every other country in the world,” said Josh Lipsky, chair of international economics at the Atlantic Council.

He told AFP that the path forward now depends on how the EU responds, calling it “one of the most precarious moments of the trade war so far.”

The Trump administration’s decision to impose 30% tariffs on imports from the EU and Mexico, effective August 1, 2025, marks a pivotal moment for U.S. trade policy. While the move risks escalating geopolitical tensions and inflationary pressures, it also creates a rare opportunity for investors to capitalize on structural shifts in logistics, manufacturing, and supply chain resilience. Companies positioned to navigate these headwinds—through domestic infrastructure investments, nearshoring strategies, and advanced technologies—are poised for outsized gains.

The Tariff Landscape: A Catalyst for Change

The tariffs, part of a broader “America First” trade strategy, target $1.1 trillion in annual imports from two of the U.S.’s largest trading partners. The EU faces penalties on automotive, steel, and luxury goods, while Mexico’s agricultural and manufacturing sectors are under threat. Both regions have retaliated: the EU has $100 billion in counter-tariffs ready, while Mexico’s reliance on U.S. markets (80% of its exports go to the U.S.) limits its leverage.

But for investors, the focus is on the opportunities emerging from this disruption. Companies that can mitigate tariffs through reshored production, diversified supply chains, or smarter logistics networks will thrive. Below, we break down three sectors to watch:

1. Logistics Infrastructure: Building for Resilience

The tariffs are forcing businesses to shorten supply chains, favoring U.S.-based logistics networks. Companies with cutting-edge infrastructure—such as automated warehouses, AI-driven routing, and green energy systems—are best placed to capitalize.

Key Plays:

– XPO Logistics (XPO): Specializes in last-mile delivery and automation. Its AI-driven platforms optimize routes and inventory, reducing costs for companies facing tariff-driven inflation.

– United Parcel Service (UPS): Dominates global e-commerce logistics. Its investments in electric vehicles and drone delivery networks align with demand for faster, greener distribution.

C.H. Robinson (CHRW): A freight brokerage leader using AI to manage complex supply chains. Its 3PL (third-party logistics) services are critical for companies reconfiguring their networks.

2. Nearshoring Manufacturing: Mexico and Beyond

As tariffs make traditional offshoring unviable, U.S. manufacturers are shifting production closer to home. Mexico, despite its own tariffs, remains a key beneficiary due to its proximity, trade agreements (USMCA), and lower labor costs. Meanwhile, industries like semiconductors and automotive are exploring partnerships in Vietnam and Southeast Asia.

Key Plays:

– Wabtec Corporation (WAB): Supplies rail and logistics equipment. Its technology for efficient freight transport is critical as companies rely more on overland shipping within North America.

– Ball Corporation (BAL): A packaging leader with U.S. manufacturing hubs. Its proximity to domestic suppliers reduces tariff exposure for clients in consumer goods.

– Ryder System (R): Provides fleet management and supply chain solutions, essential for companies scaling up nearshored operations.

3. Supply Chain Resilience Tech: The AI and Blockchain Edge

The tariffs have exposed vulnerabilities in global supply chains, driving demand for technologies that enhance transparency, agility, and risk mitigation. AI-driven demand forecasting, blockchain-based traceability, and IoT-enabled inventory management are no longer optional—they’re survival tools.

Key Plays:

– IBM (IBM): Leverages blockchain (e.g., IBM Food Trust) to track goods across borders, reducing fraud and compliance risks.

– Cvent (CNVT): Offers AI-powered logistics software for route optimization and demand planning.

– Zebra Technologies (ZBRA): Provides handheld scanners and IoT devices critical for real-time inventory tracking in warehouses.

Risks and Considerations

While the tariff-driven reshaping of supply chains offers long-term opportunities, near-term volatility is inevitable. Legal challenges (e.g., the stayed injunction on “fentanyl” tariffs) and retaliatory measures could delay implementation timelines. Investors should also monitor inflation trends: Citi analysts warn tariffs could extend price pressures into 2026, squeezing margins for less agile companies.

Conclusion: A Playbook for Navigating Tariffs

The 30% tariffs are a seismic shift, but they’re also a clarion call for investors to focus on companies with the agility to adapt. Prioritize firms with:

1. Domestic logistics scale and tech sophistication,

2. Exposure to nearshoring hubs like Mexico and Southeast Asia, and

3. Core competencies in AI, automation, or blockchain.

The coming quarters will separate winners from losers in this new trade reality. For those who act decisively, the rewards could be substantial.

President Donald Trump on Saturday said major US trading partners Mexico and the European Union would face a 30 percent tariff starting next month, ramping up pressure for deals in his trade wars.

Both sets of duties would take effect August 1, Trump said in separate letters posted to his Truth Social platform, citing Mexico’s role in illicit drugs flowing into the United States and a trade imbalance with the EU respectively.

Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.

President Trump announced a 30% tariff on EU and Mexican imports starting August 1, warning of higher taxes if retaliated against.

www.bbc.com

President Donald Trump has announced that the European Union and Mexico will face a 30% tariff on imports to the US starting 1 August. This significant move raises questions about the future of international trade relations and the potential economic impact on both sides.

6 Key Takeaways Trump announces 30% tariff on EU, Mexico.

Higher tariffs threatened if retaliatory actions occur.

Letters posted on Trump’s Truth Social platform.

EU seeks agreement before August deadline.

US trade deficit with EU was $235.6bn.

EU ready to adopt countermeasures if necessary.

In letters posted on Trump’s Truth Social website, he warned of even higher import taxes if either trading partner retaliates. The EU, America‘s largest trading partner, expressed hope for a deal before the deadline.

Trump’s letter to European Commission President Ursula von der Leyen highlighted the long-standing trade deficits and non-reciprocal relationship. As the 1 August deadline approaches, how will these tariffs reshape global trade dynamics?

Fast Answer: Trump’s 30% tariff on EU and Mexican imports could escalate trade tensions, impacting economies worldwide as negotiations unfold before the 1 August deadline.

This tariff announcement raises critical questions about the future of US-EU trade relations. Will the EU’s openness to negotiations lead to a resolution, or will retaliatory measures escalate tensions further?

Trump cites persistent trade deficits as a primary concern.

The EU aims to safeguard its interests with potential countermeasures.

Global markets may react to the uncertainty surrounding these tariffs.

The potential for escalating trade tensions poses risks to global economic stability, affecting markets and consumers worldwide.

As negotiations progress, stakeholders must remain vigilant and engaged to navigate the complexities of international trade and avoid further escalation.