President Donald Trump has imposed a new 30 per cent tariff on the European Union and Mexico, as the White House intensifies its retaliatory trade policy around the world. 

Mr Trump announced the decision in two separate letters addressed to Mexican President Claudia Sheinbaum and European Commission president Ursula von der Leyen on social media on Saturday, stating that the new tariffs will take effect starting August 1, 2025.

In the letter to Ms Sheinbaum, Mr Trump cited the lack of adequate effort from the Mexican government to combat drug trafficking into the United States by cartel organisations as the main reason for imposing the 30 per cent on Mexico, which did not face additional tariffs during the ‘Liberation Day’ tariff rollout in April.

“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 into a narco-trafficking playground,” Mr Trump wrote in the letter.

He added, “Obviously, I cannot let that happen! Starting August 1, 2025, we will charge Mexico a tariff of 30 per cent on Mexican products sent into the United States, separate from all sectoral tariffs. Goods transshipped to evade higher Tariffs will be subject to that higher tariff.”

Justifying the decision regarding European countries, Mr Trump accused the EU of unfair economic relations, stating that the bloc has one of the largest trade deficits with the U.S.

He noted that the one-sided trade arrangement must be addressed for the U.S. and EU to compete in a balanced market.

“We have had years to discuss our trading relationship with the European Union, and have concluded that we must move away from these long-term, large, and persistent trade deficits, engendered by your tariff and non-tariff policies and trade barriers,” Mr Trump said.

He added, “Our relationship has been, unfortunately, far from Reciprocal. Starting on August 1, 2025, we will charge the European Union a Tariff of only 30 per cent on EU products sent into the United States, separate from all sectoral tariffs.”

Ms Von der Leyen responded to Mr Trump’s letter shortly after the announcement, assuring that the EU would work towards reaching a deal with the United States before the deadline.

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