Responding to President Donald Trump's announcement to impose 30-per cent tariffs on exports from the European Union (EU) and Mexico starting August 1, the former has reiterated its commitment to negotiations, while the latter rejected the move, terming it ‘unfair’ and unacceptable.Trump made the announcement yesterday on his Truth Social platform, citing a trade imbalance with the EU and Mexico’s alleged role in the flow of illicit drugs into the US.A joint statement from Mexico’s economy and foreign ministries labelled the US move an ‘unfair deal’. “We mentioned at the table that it was an unfair deal and that we did not agree,” the statement read.

But Mexican President Claudia Sheinbaum is reportedly still optimistic that a deal can be reached with the United States.

European Commission chief Ursula von der Leyen cautioned that the US tariffs would “disrupt essential trans-Atlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.”

The EU would prefer a negotiated settlement, and “we remain ready to continue working towards an agreement by August 1,” she said.

But if talks failed, “we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures,” she said, adding that the EU’s trading practices remain among the most open and fair globally.

"The EU has consistently prioritized a negotiated solution with the US, reflecting our commitment to dialogue  stability, and a constructive transatlantic partnership," she said. Brussels has already drawn up a retaliatory tariff package worth €21 billion, which remains suspended until July 14.

The EU "remains firm, united and ready to protect (its) interests", European Council President Antonio Costa said, adding that “tariffs…fuel inflation, create uncertainty and hinder economic growth”.

Meanwhile, condemning the US decision, French President Emmanuel Macron called on the bloc to "resolutely defend European interests" and "step up the preparation of credible countermeasures by mobilising all instruments at its disposal" if the two sides failed to reach agreement by August 1, a global newswire reported.

Spanish Prime Minister Pedro Sanchez called the tariffs unjustified. "Economic openness and trade create prosperity. Unjustified tariffs destroy it. That is why we support and will support the Commission in its negotiations to reach an agreement with the US before August 1," he said.

"A pragmatic outcome to these negotiations must be reached quickly," Germany's economy minister Katherina Reiche said in a statement.

EU diplomats will discuss the US tariff issue at an emergency meeting in Brussels today to assess next steps.