President Donald Trump unleashed his latest tariff ultimatums, declaring a 30% rate for Mexico and the European Union, as his trade agenda continues to keep allies off balance and inject uncertainty into global financial markets.

Trump made the announcement in two letters posted to social media Saturday as he informed key trading partners of new rates that will kick in on Aug. 1 if they cannot negotiate better terms.

He has spent the week sending out letters to a number of countries, tweaking his proposed tariff levels from April and inviting trading partners to negotiate further.

The EU had been hoping to conclude a tentative deal with the U.S. to stave off higher tariffs, but Trump’s letter punctured the recent optimism in Brussels over the prospects for an 11th-hour agreement between the major economies.

He did, however, leave an opening for additional adjustments.

“If you wish to open your heretofore closed Trading Market to the United States, and eliminate your Tariff, and Non-Tariff, Policy and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” Trump wrote.

European Commission President Ursula von der Leyen said the bloc “took note” of Trump’s letter and warned that such a move would damage both economies. The bloc’s ambassadors are scheduled to meet Sunday to discuss the trade situation.

“We remain ready to continue working towards an agreement by August 1,” von der Leyen said in a statement. “At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

With the EU, Trump initially announced a 20% tariff in his “Liberation Day” event in early April before lowering it to 10% as part of a 90-day negotiating pause. But he quickly grew frustrated with the 27-country bloc and threatened a 50% rate, spurring more talks.

Earlier in the week, the EU said it was closing in on a framework agreement with the U.S. after von der Leyen spoke with Trump last weekend. French President Emmanuel Macron said he strongly disapproved of Trump’s announcement, while Dutch Prime Minister Dick Schoof said in a post on X that the EU “must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”

The tariff rates would apply widely, though separate from the president’s sectoral tariffs on products such as automobiles and steel. If implemented, it could place the EU at a competitive disadvantage on American exports to the neighboring U.K., which left the bloc in 2020 and was the first country to come to a top-line trade pact with Trump.

Fentanyl fight

In his letter to Mexican President Claudia Sheinbaum, Trump said the country has been “helping me secure the border,” but added that it wasn’t enough.

Trump added that if Mexico “is successful in challenging the Cartels and stopping the flow of Fentanyl,” the U.S. would consider adjusting the levies.

“These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” he added.

The U.S. doesn’t intend to apply the 30% rate to USMCA-compliant goods, according to a White House official. The situation remains fluid, the official cautioned. The administration has previously said it will keep the exemption for Canada.

Continuing the exclusion for both Mexico and Canada narrows the scope of Trump’s continental tariffs and would be a lifeline to sectors like the auto industry that rely heavily on the USMCA pact — which was renegotiated under Trump’s first term — for duty-free shipments and heavily integrated supply chains.

Taken together with his Canada letter earlier in the week, Trump plans to inch up the top tariff rate — to 35% for Canada and 30% to Mexico — while leaving other tariff rates untouched: the duty-free USMCA treatment and a 10% rate on Canadian energy products.

Mexican Economy Minister Marcelo Ebrard posted a government statement calling the new levies “unjust” in a post on X. It said the two countries had just established a new working group on Friday to address security, migration and economic issues.

“The first major task of the permanent binational group will be to conduct work so that before that date we have an alternative that will protect businesses and jobs on both sides of the border,” the statement said. “Mexico is already in negotiations.”

Mexico is the third country to get a letter that wasn’t actually facing a tariff hike on the now-extended July 9 deadline, following Canada and Brazil.

Other countries Trump has singled out for tariffs hikes in recent day include Japan, South Korea, South Africa, Indonesia, Thailand and Cambodia, as well as Algeria, Libya, Iraq and Sri Lanka.

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(With assistance from Suzanne Lynch, Michael O'Boyle and Valentine Baldassari.)

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