President Donald Trump has announced that the European Union and Mexico will face a 30 percent tariff on imports to the US from 1st August.
He warned he would impose even higher import taxes if either of the US trading partners decided to retaliate.
The 27-member EU - America's biggest trading partner - said earlier this week it hoped to agree a deal with Washington before 1st August.
Trump has this week also said the US will impose new tariffs on goods from Japan, South Korea, Canada and Brazil, also starting from 1st August.
Similar letters were sent this week to a number of smaller US trade partners.
Source: BBC
