President Trump on Saturday morning fired off two trade warning letters via Truth Social, threatening to impose 30% tariffs on all Mexican and European imports starting August 1. The warning to Mexico hinges on action to curb the flow of fentanyl and dismantle drug cartels, while the threat to Europe demands an end to long-standing trade imbalances driven by EU tariffs and non-tariff barriers. This caps off a week of letters sent to America's top trade partners, with tariff threats used as a negotiation tool by the Trump administration to seal deals.

"Despite our strong relationship, you will recall, the United States imposed Tariffs on Mexico to deal with our Nation's Fentanyl crisis, which is caused, in part, by Mexico's failure to stop the Cartels, who are made up of the most despicable people who ever walked the Earth, from pouring these drugs into our country," Trump said in the letter addressed to Mexican President Claudia Sheinbaum Pardo. 

He continued, "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground." 

Here are the key points in the letter: