The U.S. will charge a 30% tariff on goods from the European Union and Mexico effective Aug. 1, President Trump said in letters to the trade partners’ leaders.

The bloc postponed penalties, temporarily avoiding a conflict with the Trump administration during a week in which it ramped up its push for a trade deal with the U.S.

President Trump’s U-turn has left governments around the world pondering how to approach a U.S. that has become nearly impossible to predict.

Tariffs risk damaging far more than sales of whiskey and Champagne, the American Chamber of Commerce to the European Union says.

U.S. duties could nudge the European Union toward protectionist measures and away from free trade.