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

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.

President Donald Trump extended his "Liberation Day" tariff pause and sent letters to trading partners announcing new tariff rates for Aug. 1.

Mexico is projecting confidence that it will fend off a new set of 30% tariffs that President Donald Trump has threatened to impose on the Latin American country starting on Aug. 1.

President Trump announced in a letter posted to social media on Saturday that he would place a 30 percent tariff on goods from the European Union, upending months of careful negotiations and further roiling what is one of the world’s most important economic relationships.

The deadline for the duties to go into effect are still three weeks, which may mean the announcements could be a negotiating move.