Trump's tariff showdown: High-stakes talks with Canada, Mexico

Trump stated that he will impose 25 percent tariffs on Canada and Mexico. These are set to take effect on February 4th, unless a last-minute agreement is reached, according to Bloomberg.

Mexico and Canada together account for almost 30 percent of U.S. imports.

The last-chance talks are scheduled for Monday morning. Trump emphasized that he will speak separately 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 suggest possible concessions. Canada proposes the creation of a joint task force on fentanyl, and Mexico is enhancing border security measures, though economic uncertainty continues.

The potential exclusion of oil from tariffs remains an open issue. Canada and Mexico account for about 70 percent of U.S. crude oil imports.

Trump also reiterated threats directed at the European Union, emphasizing that tariffs "will certainly be introduced." He pointed to the large trade deficit with Europe.

They don't take our cars, they don't take our agricultural products, he said, referring to the EU. They take almost nothing, and we take everything, he added.

Trump's aggressive rhetoric led Europe to commit to more purchases in the U.S. to reduce the trade deficit and somewhat "appease" the U.S. president. Gas is poised to become a bargaining chip for the EU and a safeguard against the tariffs, which Trump announced would range from 10 to 20 percent on European products.

The head of the European Commission has already discussed with Trump replacing Russian liquefied gas with American gas.

As Bloomberg reports, Trump's renewed threats caused the euro to fall while the dollar strengthened.