Thursday, October 30, 2025

US announces 30% tariff on Mexican goods as bilateral talks continue

On Friday, President of the United States Donald Trump informed Mexican President Claudia Sheinbaum in a letter that he would impose a 30% tariff on Mexican imports beginning Aug. 1.

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” the letter states. “Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground.” Trump also announced a 30% tariff on imports from the European Union, due to “persistent, trade deficits, engendered by your tariff, and non-tariff, policies and trade barriers,” the president said in a separate letter

On Monday, Sheinbaum announced that the concerns cited in the letter would be addressed in ongoing bilateral talks, particularly the significant U.S. trade deficit with Mexico. She expressed confidence that Mexico would be able to negotiate a deal to reduce, if not eliminate, the tariff.

The new tariffs were a blow to Sheinbaum’s cabinet, which has made numerous trips to Washington to ensure Trump’s advisors that Mexico is making progress on the issues identified as priorities by the U.S. president.

In recent weeks, U.S. Secretary of State Marco Rubio praised Mexico for being “very responsive” to Washington’s demands and U.S. Treasury Secretary Scott Bessent called Mexico’s proposals “positive.”

Mexico was informed that the letter was coming during high-level talks with U.S. State Department officials on Friday. The Mexican delegation expressed disagreement with the decision and considered it “unfair treatment,” according to a joint statement of the Economy Ministry and the Foreign Affairs Ministry.

Sheinbaum, who has avoided directly criticizing  Trump, voiced confidence that the U.S. and Mexico will be able to discuss the matter diplomatically.

“I’ve always said that in these cases, you need a cool head to face any problem,” Sheinbaum said on Saturday.

The tariff, if it goes into effect, could cause massive upheaval between the United States and its biggest trade partner.

The 30% rate would effectively replace the 25% tariffs currently levied on Mexican goods that do not comply with the existing U.S.-Mexico-Canada free trade agreement (USMCA).

The letter did not address whether USMCA-compliant goods would still be exempt from the new tariffs after Aug. 1.

Columnist for the newspaper El Financiero Enrique Quintana estimated that approximately US $150 billion worth of Mexican goods would be subject to the new 30% import tax.

In the joint statement, Mexico said “the first major task of the permanent binational committee will be to conduct the work so that, before [the tariffs take effect], we have an alternative that will protect businesses and jobs on both sides of the border.”

The bilateral talks involve Ebrard’s Economy Ministry along with the foreign relations, finance, security and energy ministries.

On its side of the table, the U.S. State Department is joined by the Commerce and Energy departments, Homeland Security and the U.S. Trade Representative.

Sheinbaum said Mexico’s negotiators will emphasize the progress her administration has made in the fight against organized crime, while also seeking to gain greater cooperation from U.S. counterparts.

“We have insisted that controlling the flow of weapons from the United States to Mexico, and arresting individuals involved in drug trafficking in the United States [requires] collaboration,” she said on Monday. “Yes, there is coordination, but part of [the responsibility] falls on us to prevent drugs from passing from here to there, but part of it also falls on them.”

Sheinbaum said her administration will continue working to reach a satisfactory agreement. “The most important thing for us is to ensure that employment is not affected and that cooperation between our countries is maintained,” she said.

As has been the case since Trump imposed the first of a string of tariffs on Mexico, Sheinbaum has declined to discuss retaliatory tariffs. In his letter, Trump included a threat to raise the tariffs should Mexico opt to retaliate.

With reports from The Associated Press, El Economista, El Financiero, Reuters and The Guardian

19 COMMENTS

  1. What a thug. Mexico has created the fentanyl plague with a presumably perverse reason for not diluting the hazard substance but the U.S.A. created the pre-existing demand for recreational drugs. Whatever limited tariff powers the thug has from Congress he has abused. I wish that México had comparable power and lodged tariffs against the U.S.A. for having a fascist-racist regime run by a felon with no regard for laws, morality, or truth.

      • The vast majority of Americans did not vote for the convicted felon and adjudicated rapists. And a significant number of trump’s male supporters suffer from tds. So I wouldn’t be so brazen advertising people who trump backers’ medical problems.

      • The liberals that comment here come off as partisans on the fringe not thought provoking. The attacks are always personal never addressing the underlying issues just hyper partisan nonsense.

  2. The whole situation can be solved by Trump and Sheinbaum issuing a joint statement stating that all persons convicted in a court of law of trafficking fentanyl, on either side of the border, will receive the death penalty within 7 days of conviction. Don’t want to do that? Then you are not serious about the problem.

  3. I heard recently that 80% of Mexico’s exports are bound for the US. I didn’t research it, but it seems reasonable given the geography, population and economic sizes involved. Normally, all things being equal, that would seem like a good thing, if your rich neighbor is your biggest client. But Mexico shares a border with a slowly collapsing empire that is more concerned with maintaining hegemony rather than stable, mutually beneficial trade. Hopefully, Mexico’s appropriate ministries are busy finding suitable markets for Mexican goods, at the same time navigating the precarious gulf of American Foreign Policy.

    Mexico brings up, and most of the media basically ignores, the weapon smuggling by the US manufacturers, as if it isn’t as consequential as the fentanyl smuggling into the US. They are two sides of the same coin. The US has a healthcare “system” that seems intended to bankrupt a large segment of society, or at least increase the number of drug addicts demanding such products as fentanyl. No other country has had quite the damage done by drug addiction since the China of the Opium Wars era. This of course empowers drug traffickers, and arming the narcotraficantes helps to complicate the situation for the Mexican government.

    But I’m sure the real explanation is that the US government is doing all that it can to cope with the situation thrust upon it by the all-powerful narcos and their lackies in the Mexican govt. The simple media explanation is usually the easiest to accept, and the most ubiquitous in entertainment. Generating chaos in your own country and in your neighbor to the south isn’t really good for the government, but it IS good for government contracts.

  4. You have it all completely” ass backwards”. The majority of registered voters, voted for President Trump. Both the electrical college and the majority of “popular” vote. It’s Mexican, people like you who can’t read and to see the truth. Don’t take my word. go get the data for yourself.

  5. trump barely won the popular vote in the last election. In the 2016 U.S. presidential election. “In 2024, Trump achieved about 49.97% of the popular vote, while Kamala Harris received around 48.36%.” Despite Trump and MAGA claims, that is NOT a popular mandate for Trump to wreck the havoc he has and continues to do. He has a very small mind with not a lot of intelligence nor literacy. trump wants to make Mexico and many others “boogie men” to keep his poorly informed MAGA base scared. It’s the trump play book. What trump forgets is that he and the USA NEED Mexico….and soon more than Mexico needs the USA. We’ll see that MOST Americans will not want to lose the advantages we have in our neighbor Mexico. Drugs are definitely a problem both countries face. The USA is
    S far from innocent.

  6. Shifting the blame of US citizens drug addiction onto Mexico is ludicrous. The only way to solve the drug problem in the United States is through drug interdiction, demand reduction, and treatment. Stopping the flow of drugs from Mexico solves nothing because drugs are shipped all to and from all over the world. Mexico continues to cooperate with the United States and has proven its willingness to support the United States.
    The United States needs to take responsibility for all the guns manufactured for Mexico as well as for its own problems in economic disparity and homelessness. Pot calling the kettle black? Where are the grown ups in the United States?

    Clearly diplomacy in the United States is near non-existent if the 30% tariffs become reality.
    The continued bullying, debasing and intimidation of the Mexican government and its people is distressing and disgraceful. The current administration of the United States appears to have no moral compass and feeds on hate, fear and avarice.

    The US government also feed off the fears of its own citizens. Cruelty is widespread in the United States as the federal government swiftly takes away as well as slowly chips away at U.S. citizens rights under its constitution. What benefit from tariffs does the ordinary citizen have in any country? None.

    In the meantime, Mexico and other countries are blamed, forced, and bullied by this administration. Insulting, threatening and rattling others is such low brow behavior. Who raised these children to become badly behaved adults?

    Tariffs increase poverty everywhere and tariffs potentially start wars. There are no winners when we do not resolve our issues by compromise and good faith through diplomacy. I am so proud of President Claudia Sheinbaum and her steadfast calm composure, very firm stance, unwavering commitment and leadership. May her consistent leadership continue to inspire myself as well as others.

    • Lee, pls write to the White House… they do read what people say. Months passed i wrote in regard to this issue also suggesting ( as per economist Martin Armstrong ) that The US also operates SSI as a wealth fund to reduce stress burden on US residents………. literally 2 days later Trump issued an executive order to operate SSI as a Wealth Fund … naturally as long as there is a market – suppliers will find the way…. eliminate the market for drugs… suppliers will find another market…101

  7. Where there is a strong demand and lucrative profits, supply will be met either legally or in the black market. Fentanyl is a unique drug in how fast it becomes addictive and how deadly it is. Fentanyl use is much higher in the US than Mexico. The long-term solution is mandatory education in US high schools on its danger. That would be money well spent. Gun-nut 2nd Amendment pushers in the US think they are doing Mexico a favor shipping guns south so there will unlikely be any solution restricting that. Mx and the US have the highest gun homicides in the world. If Sandy Hook could not spawn more gun controls in the US, nothing will. Just learn accept the insanity.

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