U.S. President Donald Trump said the sweeping tariffs that he has imposed on Mexico, Canada and China may cause "short term" pain for Americans, while EU leaders gathered on Monday amid threats the bloc will also face punishing U.

Tariffs are slamming the stock market but there’s still hope that the Trump administration's threatened levies are a negotiating tactic. Expect settlements with Mexico and Canada but Chinese imports to get more costly,

Trump has long proposed raising tariffs—or taxes on imported goods that the businesses importing them pay the U.S. government—before the election, and said in November he’ll impose a 25% tariff rate on all imports from Mexico and Canada on the first day of his presidency and will impose an additional 10% tariff rate on all imports from China on top of other tariffs.