U.S. Commerce Secretary Howard Lutnick told Fox Business that President Donald Trump is likely to reach a compromise on tariffs with Canada and Mexico, with an announcement expected Wednesday.
Trump’s 25% tariffs on imports from Canada and Mexico took effect Tuesday, alongside a tariff increase on Chinese goods to 20%. The move has intensified global trade tensions, sparking fears of slower economic growth and rising prices for American consumers.
Canadian Prime Minister Justin Trudeau called Trump’s decision “a very dumb thing to do” and announced immediate retaliatory measures. Ottawa has pledged to counter the tariffs, signaling a potential escalation in trade disputes between the two nations.
Lutnick revealed that officials from Canada and Mexico had been in discussions with the U.S. throughout the day, seeking a resolution. He indicated that Trump is open to negotiations but is unlikely to pause tariffs entirely. Instead, the administration is expected to find a middle ground, requiring Canada and Mexico to make concessions in exchange for tariff relief.
“So I think he’s going to work something out with them,” Lutnick told Fox Business’ Kudlow program. “It’s not going to be a pause … but I think he’s going to figure out you do more, and I’ll meet you in the middle somewhere, and we’re going to probably be announcing that tomorrow.”
With trade tensions rising and the potential for economic consequences, investors and businesses are closely watching Trump’s next move. The outcome of these negotiations could significantly impact North American trade relations and global markets.