President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on Aug. 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.

Update: The updated post reflects European markets closing indices. London (UKX) -0.38% to 8,941, after closing at a new record level on Thursday, as investors reacted to weak UK GDP data and escalating trade tensions.

President Trump announced in letters posted to social media on Saturday that he would place a 30 percent tariff on goods from the European Union and Mexico, upending months of careful negotiations and disrupting America’s economic relationships with two of its biggest trading partners.

With just five days remaining in the tariff moratorium, the White House is expected to begin delivering a message to a dozen or so countries: Time is up, and here’s your new rate.

In a pair of letters published to his Truth Social account on Saturday morning, President Donald Trump told European Union and Mexican leaders that they can expect to face higher tariff rates from Aug.

Ahead of the vote on Thursday, Ursula von der Leyen, president of the commission, appeared before the European Parliament to defend herself against complaints about transparency.

Donald Trump is threatening to hit the European Union with import tariffs three times higher than those imposed on Brexit Britain. Mr Trump announced on Saturday that he plans to hit Brussels with a 30 per cent levy on its exports to the US, saying that Washington’s trade deficit with the bloc was a national security threat.

The European Commission describes the trade between the U.S. and the EU as "the most important commercial relationship in the world.” The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat.

The EU is aiming for a July 9 deal, which would include a 10 percent baseline tariff. Trump has threatened to impose 50 percent tariffs if no deal is reached.