U.S. President Donald Trump announced on Friday that a 30% tariff on Mexican imports will take effect August 1. In a letter to President Claudia Sheinbaum, Trump said the decision was driven by Mexico’s failure to fully stop drug cartels, which he claimed are trying to turn “all of North America into a Narco-Trafficking Playground.”
Trump added that while Mexico has cooperated on border security, “what Mexico has done is not enough.” He also unveiled a similar 30% tariff on imports from the European Union, citing persistent trade deficits and what he called “tariff and non-tariff barriers” in a separate letter to EU leaders.
Sheinbaum responded on Monday, saying the concerns raised by Trump will be addressed through ongoing bilateral negotiations. She expressed confidence that Mexico could reach an agreement to reduce or eliminate the tariff.
The new measure is a setback for Sheinbaum’s administration, which has made repeated diplomatic efforts in Washington to reassure U.S. officials that Mexico is making progress on key issues, including drug trafficking and trade imbalances.
In recent weeks, U.S. Secretary of State Marco Rubio praised Mexico for being “very responsive,” while Treasury Secretary Scott Bessent described Mexico’s proposals as “positive.”
According to a joint statement from Mexico’s Economy and Foreign Affairs ministries, the Mexican delegation was informed of Trump’s letter during high-level meetings with U.S. officials on Friday. The delegation described the decision as “unfair treatment.”
Sheinbaum has avoided directly criticizing Trump but said she remains hopeful that the issue can be resolved diplomatically. “I’ve always said that in these cases, you need a cool head to face any problem,” she said on Saturday.
If implemented, the tariff could trigger major disruptions in the economic relationship between the U.S. and its largest trading partner. It would replace the current 25% tariffs on goods that fail to meet the terms of the U.S.-Mexico-Canada Agreement (USMCA). The letter did not clarify whether USMCA-compliant goods would be exempt from the new tariffs.
Enrique Quintana, columnist for El Financiero, estimated that about US $150 billion worth of Mexican exports could be affected by the 30% tariff.
Mexico’s joint statement emphasized the need for an alternative plan to protect businesses and jobs before the new tariff is enacted. The response is being coordinated through a permanent binational committee involving Mexico’s economy, foreign affairs, finance, security, and energy ministries. On the U.S. side, the discussions involve the State, Commerce, and Energy departments, Homeland Security, and the U.S. Trade Representative.
Sheinbaum said Mexico’s negotiators will highlight the government’s progress in tackling organized crime and will seek more cooperation from the United States. “Controlling the flow of weapons from the U.S. to Mexico and arresting drug traffickers in the U.S. requires collaboration,” she said Monday. “Yes, there is coordination, but the responsibility lies on both sides.”
She stressed that her administration remains focused on protecting jobs and preserving cooperation with the U.S. “The most important thing for us is to ensure that employment is not affected and that cooperation between our countries is maintained,” she said.
So far, Sheinbaum has declined to comment on the possibility of retaliatory tariffs. Trump’s letter warned that the 30% tariff could increase further if Mexico chooses to retaliate.