U.S. Announces 30% Tariffs on Mexico and EU Imports Starting August 2025; Negotiations Ongoing

 In a new escalation of U.S. trade policy, President Trump announced that beginning in August 2025, the United States will impose a 30% tariff on products imported from both Mexico and the European Union. The announcement came through letters sent to Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen.

The President justified the tariffs on Mexico by citing the country’s alleged failure to curb fentanyl and other drugs entering the United States, as well as insufficient cooperation in addressing illegal immigration. With regard to the European Union, the Administration claims that longstanding tariff and non-tariff barriers have created a large trade imbalance that is “far from mutually beneficial.”

The letters reportedly mirror the language used in similar communications sent to leaders of other nations in recent weeks. In addition to warning against retaliatory measures, they encourage foreign companies to relocate operations to the United States and suggest that tariffs could be adjusted if the affected countries take steps to cooperate with U.S. policy demands. To date, the Administration has issued tariff warnings or conditions on 24 countries and all 27 EU member states.

EU Response and Potential Retaliation

European Commission President Ursula von der Leyen responded on July 13, announcing that the EU would postpone retaliatory tariffs—originally set to take effect on July 14—until early August to allow more time for negotiations. The planned EU tariffs targeted €21 billion in U.S. imports and would have ranged between 10% and 25%. Von der Leyen emphasized that “now is the time for negotiation” and indicated that she had received a letter of intent from the U.S. proposing a possible path toward resolution.

However, EU officials, including German Finance Minister Klingbein, have cautioned that if negotiations fail, tough countermeasures may still be taken to protect European jobs and industries.

Going Forward

If implemented, the 30% tariffs on imports from Mexico and the EU will have an immediate and significant impact on U.S. businesses that rely on these trade lanes. Mexico is one of the United States’ largest trading partners, particularly for automotive, agricultural, and manufacturing supply chains. Similarly, the EU is a major source of machinery, pharmaceuticals, luxury goods, and industrial components.

Importers should begin preparing for potential cost increases by:

• Reviewing current sourcing strategies and identifying goods most affected by the new tariffs.
  
• Updating landed cost models and renegotiating contracts where possible.
  
• Coordinating with customs brokers and freight forwarders to ensure proper classification and duty assessment.
  
• Monitoring negotiations closely for signs of a potential deal that could delay or alter the tariff implementation.
  

For now, the situation remains fluid, with the EU signaling a willingness to continue negotiations and avoid immediate retaliation. Whether those talks succeed will determine whether businesses face a prolonged tariff dispute or a possible reprieve before the August deadline.

If you have questions about how this policy could affect your importing activities or customs compliance, please contact our office for assistance. As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions.  If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.