The United States has announced sweeping new tariffs on imports from both Mexico and the European Union, citing unresolved trade imbalances and ongoing issues with narcotics trafficking.

In two letters dated July 11, 2025, President Donald Trump notified the leaders of both regions that 30% tariffs would be levied on their goods beginning August 1, 2025. These letters were posted in the President’s social media handle Truth Social.

The tariffs--outlined in direct correspondence with Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen--reflect a broad policy shift that places economic pressure on allies to address long-standing U.S. concerns over trade deficits, narcotics trafficking, and market access.

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Trump emphasized that the 30% tariff on Mexican imports was partly a response to the country's continued failure to dismantle powerful drug cartels.

The White House warned that if Mexico attempts to sidestep the tariffs through transshipment or imposes retaliatory tariffs, those actions will trigger additional penalties.

However, Trump offered tariff exemptions to firms that relocate production to the United States, promising a fast-tracked approval process.

The European Union's letter criticized the bloc for its “non-reciprocal” trade policies and tariffs that have contributed to one of the U.S.'s largest trade deficits.

Trump stated the new tariff regime is a corrective step and will apply broadly to EU goods, excluding those already under sector-specific tariffs.

He assured that companies shifting operations to the U.S. would be spared and supported through expedited regulatory procedures.

In both letters, Trump signaled a willingness to engage--if counterparts take concrete steps to address U.S. concerns.

Here are five strong picks of publicly traded U.S. companies that stand to be affected by the new 30% tariffs on Mexico and the EU:

Deere & Company (NYSE:DE) – The agricultural equipment giant expects approximately $500 million in tariff-related costs affecting parts imported from Mexico and the EU, Thw Wall Street Journal reported in May.

General Motors Co. (NYSE:GM) – Roughly 30% of General Motors vehicles sold in the U.S. during the first three quarters of 2024 were built in Canada and Mexico, CNBC reported in March.

With around half of its vehicles produced outside the U.S. and facing an estimated $4–5 billion in tariff exposure, the firm has adjusted its 2025 earnings forecasts downward and is boosting U.S. production to offset impact .

Ford Motor Company (NYSE:F) – Ford's earnings are under pressure from higher steel, aluminum, and auto tariffs, with analysts warning that tariffs could cost billions and significantly affect its earnings--specifically due to its heavy parts crossing borders .

5. Whirlpool Corporation (NYSE:WHR) – With major manufacturing hubs in Mexico for appliances and parts, a 30% tariff on imports would directly raise costs for Whirlpool's U.S. supply chain and potentially erode its retail margins.

These ETFs may bear the brunt of the new tariffs due to their significant exposure to cross-border manufacturing, European industrials, and Mexico-based production networks: iShares Inc iShares MSCI Mexico ETF (NYSE:EWW), SPDR DJ Euro STOXX 50 Etf (NYSE:FEZ), and more.

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