President Donald Trump announced new 30% tariffs on imports from Mexico and the European Union, set to take effect August 1. In a letter to Mexican President Claudia Sheinbaum, Trump cited Mexico’s insufficient efforts to stop fentanyl trafficking and cartel activity as the reason for the new tariffs. The U.S. already imposes a 25% tariff on non-USMCA-compliant goods and a 50% tariff on steel and aluminum. In a separate letter to European Commission President Ursula von der Leyen, Trump justified the EU tariffs by pointing to the growing U.S. trade deficit with the bloc, which reached $235.6 billion in 2024. Both von der Leyen and Mexico’s economic minister criticized the measures, with the EU warning of possible countermeasures and Mexico calling the decision unfair. Trump reiterated that companies manufacturing within the U.S. would be exempt from the new tariffs.