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.

Trump's tariff threat could extend Mexico’s economic uncertainty into 2027 as it threatens to turn the USMCA review into a struggle.

While Mexico was spared from Trump's so-called "Liberation Day" tariff rollout on April 2, the 30% rate for the E.U. is 10 percentage points higher than what the president said he would apply to America's largest trading partner in April but lower than his mid-May threat of 50%.

President Donald Trump released two tariff letters on Saturday, imposing duties of 30% on products from Mexico and the European Union.

Developers are facing mounting delays and financing hurdles as the once-white-hot sector enters a recalibration phase.