Donald Trump's recent threat to impose 25 percent tariffs on Canada and Mexico are a negotiating tactic, the president's long-time informal economic advisor argued Wednesday.

French President Emmanuel Macron and German Chancellor Olaf Scholz sought to project unity at a meeting in Paris on Wednesday, as Europe struggles to respond with one voice to threats of tariffs from U.

By definition, a tariff is a tax applied to imported goods as they enter a country. Tariffs are intended to reduce competition for US businesses by making imported goods more expensive and encouraging consumers to choose American alternatives.

U.S. President Donald Trump on Tuesday vowed to hit the European Union with tariffs and said his administration was discussing a 10% punitive duty on Chinese imports because fentanyl is being sent from China to the U.

In Donald Trump’s first 36 hours back in the White House, he threatened to slap tariffs on the US’s top four trading partners starting as soon as next week.

Some analysts increasingly believe the president sees levies as more than a negotiating ploy. To him, they’re a potential source of revenue.