The tariffs are likely to inflame tensions with one of the largest U.S. trading partners.

The Trump administration has imposed new restrictions on flights from Mexico and threatened to end a longstanding partnership between Delta Air Lines and Aeromexico

The August 1 deadline gives the countries time to negotiate agreements that could lower the tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats.

President Trump has threatened to increase Mexico’s tariff rate to 30 percent starting Aug. 1, claiming the country hasn’t sufficiently tackled drug cartels.

Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney have agreed to bolster trade collaboration as U.S. tariffs loom. The leaders plan to uphold the U.S.-Canada-Mexico trade agreement and strategize negotiations with the Trump administration.

MEXICO CITY (Reuters) -Mexican President Claudia Sheinbaum said on Wednesday that she had spoken with Canadian Prime Minister Mark Carney and that the two had agreed to strengthen trade collaboration, particularly in light of the tariffs from U.S. President Donald Trump set to go in effect on August 1.