US imposes 30% tariffs on Mexico citing fentanyl

Mexican officials have been negotiating for months in hopes of reaching a trade deal with Washington that would not devastate the country’s export-driven economy, but President Donald Trump upended those talks Saturday when he threatened to impose a 30% tariff on Mexican imports, potentially igniting a trade war with one of America’s largest trading partners.

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In a letter to Mexico's president, Claudia Sheinbaum, Mr Trump said that Mexico was not doing enough to curb the flow of fentanyl into the United States and cited that as the reason for the tariffs. Mr Trump added that Mexican companies were welcome to manufacture their products in the United States to avoid the tariffs.

The tariffs are set to take effect on Aug 1 and are similar to the levies that the United States is imposing on imports from Canada and the European Union, which Mr Trump said separately on Saturday would also face 30% duties. The tariffs come despite the fact that the United States and pointed to other Mexican policies that contributed to “unsustainable” trade deficits.