Mexico is projecting confidence that it will fend off a new set of 30% tariffs that President Donald Trump threatened last Saturday to impose next month, with talks already underway to avert the worst.

US President Donald Trump has announced that all imports from Canada will have a 35% tariff as of August 1. He sent a letter to the country’s president, Mark Carney, informing him of the new rate, which has also been posted on his Truth Social account.

Since re-entering office, President Trump has announced a barrage of tariffs to try to rewire the global economy.

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.

The president said the blanket 35% would be on top of tariffs on certain sectors. That’s higher than the previous 25% rate.

On Thursday, the president announced a 35 percent tariff on all Canadian goods not covered by the United States-Mexico-Canada Agreement (USMCA) to take effect on August 1, unless a trade deal is reached before then.

Trump’s move deepens a rift between two North American countries that have suffered a debilitating blow to their decades-old alliance.