The Trump administration has reimposed 25% tariffs on Canadian and Mexican imports, marking a significant shift in trade policy after a month-long pause. However, a compromise may soon be on the horizon. Commerce Secretary Howard Lutnick indicated that President Donald Trump is likely to announce tariff compromise deals with these neighboring countries shortly, possibly as soon as Wednesday.
The potential agreements could involve scaling back some of the newly imposed 25% tariffs on imports from Canada and Mexico. Lutnick suggested a scenario where Canada and Mexico agree to "do more," prompting President Trump to "meet you in the middle some way."
Lutnick's remarks were made during an appearance on "Fox Business," where he emphasized that the upcoming announcement would not be another pause, hinting at an imminent compromise rather than a temporary halt.
The U.S. stock market experienced a second consecutive day of sharp declines, reflecting investor concerns over the possibility of a crippling trade war resulting from Trump's aggressive policies. These comments came just hours before President Trump was scheduled to deliver a primetime address to a joint session of Congress.
The Trump administration's tariff policy is rooted in allegations that Canada and Mexico have not done enough to curb the flow of drugs and crime into the United States. However, Lutnick conveyed optimism about reaching an agreement, noting the proactive engagement from both countries.
"Both the Mexicans and the Canadians are on the phone with me all day today, trying to show that they'll do better" – Lutnick
While specifics of the potential compromise remain undisclosed, Lutnick implied that the U.S. might be prepared to meet Canada and Mexico "in the middle." This suggests a partial scaling back of tariffs, rather than a complete lift.