But he stressed that the neighboring country had not done enough to stop North America from becoming a"drug and smuggling playground."

Trump's election campaign was largely based on the claim that other countries had been abusing the US's favorable tariff policies for decades.

In total, Trump has so far announced tariff terms to 24 countries and the 27-nation EU.

The EU's proposed tariff is also significantly higher than the 20% that Trump announced in April.

The EU, like dozens of other countries, was expected to raise its US tariff from a base rate of 10% on Wednesday, but Trump moved the deadline to August 1 just days before the increased rates were to take effect.

The EU has prepared retaliatory tariffs on US goods worth around €21 billion after Trump also imposed separate tariffs on steel and aluminium imports earlier this year, with their application suspended until July 14.