US Imposes 30% Tariffs on EU and Mexico from August 2025

In a sweeping move with global trade implications, U.S. President Donald Trump has announced a 30% flat tariff on all goods imported from Mexico and the European Union, effective August 1, 2025. The new tariff structure, detailed in an open letter issued by the White House, aims to address longstanding trade imbalances and drug trafficking concerns.

While President Trump emphasized continued cooperation with the EU, he cited the substantial trade deficit as justification for this latest escalation. According to the letter, a separate 25% tariff on automobiles will remain in place, but all other goods will be uniformly taxed at 30%.

EU and Mexico Respond to Tariff Measures

European Commission President Ursula von der Leyen responded swiftly, stating that the EU remains open to negotiations before the deadline. However, should talks fail, the EU will “take all necessary measures” to protect European interests, including a retaliatory tariff list covering $24.54 billion worth of U.S. exports and a supplementary plan expected to activate in early August.

Mexico, despite its duty-free status under the USMCA trade agreement, was also included in the new tariff directive. Trump linked this inclusion to continued concerns over fentanyl trafficking and border security, stating that Mexico’s efforts have been “insufficient.”

In response, the Mexican delegation strongly condemned the tariffs as unfair treatment and is seeking alternative solutions through diplomatic channels. President Claudia Sheinbaum expressed optimism about reaching a resolution with the U.S. to safeguard cross-border commerce and employment.

Threats of Retaliation and Expansion of Tax Targets

President Trump also warned that any countermeasures by the EU or Mexico would be met with “double retaliation.” Notably, the tariff policy extends beyond physical goods to target indirect barriers such as value-added taxes (VAT) and digital services taxes implemented by several EU countries. These digital levies, often applied to advertising, subscriptions, and software revenues—even when firms are not yet profitable—are seen by the U.S. as discriminatory toward American tech companies.

This is not Trump's first tariff threat. In May, he warned of a 50% tariff on EU goods due to lack of negotiation progress, and his August move marks a significant jump from the previously imposed 20% “reciprocal tariffs.”

U.S. Treasury Secretary Scott Bessant noted that the EU's proposals lag behind other key partners and praised the UK for proactively negotiating a deal, thereby avoiding inclusion in the new tariff regime.

Just prior to this announcement, on July 10, Trump had also threatened a 35% tariff on select Canadian imports, escalating pressure on another top trading partner. According to USTR data, the EU was the U.S.’s largest trading partner in 2024 with bilateral trade approaching $976 billion, followed by Mexico at $840 billion and Canada at $762 billion.

What This Means for Global Sellers and Supply Chains

The U.S.'s decision to introduce across-the-board 30% tariffs on its two largest trading partners marks a pivotal moment in international trade policy. If implemented as planned, it will likely disrupt global supply chains, weaken investor confidence, and place additional burdens on exporters across Europe and Mexico.

For businesses sourcing products from China and shipping to these regions, the situation demands careful planning, flexible logistics strategies, and reliable freight partners.

At Forest Shipping, we specialize in international freight forwarding, helping global sellers ship goods from China to Mexico, EU member states, and beyond. With 14 years of cross-border logistics experience, we offer customized shipping solutions to keep your supply chain resilient—no matter how the trade winds shift.