Trump's tariff ultimatum: High-stakes talks with Canada, Mexico
Donald Trump announced that on Monday he will conduct separate talks with Canadian Prime Minister Justin Trudeau, as well as with representatives of the Mexican government. This is the last chance for an agreement on the brink of a trade war. The U.S. President also repeated threats towards the EU.
Donald Trump announced that he will impose a 25% tariff on Canada and Mexico. According to Bloomberg, the tariffs will take effect on February 4 unless a last-minute agreement is reached.
Mexico and Canada account for nearly 30% of U.S. imports.
The U.S. President intends to conduct last-chance talks on Monday morning. He emphasized that he would have separate discussions with Canadian Prime Minister Justin Trudeau and representatives of the Mexican government.
I don't expect anything dramatic. They owe us a lot of money, and I'm sure they're going to pay - said Trump before the planned talks.
Ongoing diplomatic negotiations indicate possible concessions. Canada proposes the creation of a joint task force on fentanyl, and Mexico is strengthening security measures at the border, although direct economic uncertainty remains.
The issue of possibly excluding oil from tariffs remains open. Canada and Mexico combined account for approximately 70% of U.S. oil imports.
Trump hasn't forgotten about Europe
Trump also repeated threats directed at the European Union. He emphasized that tariffs "will certainly be introduced". He pointed to a large trade deficit with Europe.
- They don't take our cars, they don't take our farm products - he enumerated, pointing at the EU. - They take almost nothing and we take everything from them - he added.
Trump's harsh rhetoric prompted Europe to declare more excellent purchases from the U.S. to reduce the substantial trade deficit and somewhat "placate" the U.S. President. Gas is set to become the EU's bargaining chip and safeguard against the American President's 10-20% tariffs on European products.
The head of the European Commission was already discussing with Trump replacing Russian liquefied gas with American gas.
As Bloomberg notes, Trump's repeated threats caused the euro to fall in value while the dollar strengthened. The Polish currency also started the week devalued following President Donald Trump's weekend decisions.
