President Donald Trump could unveil a compromise on tariffs with Canada and Mexico as early as Wednesday, according to US Commerce Secretary Howard Lutnick.
Speaking to Fox Business on Tuesday, Lutnick suggested that negotiations were underway following the implementation of sweeping 25% tariffs on imports from the two neighbouring countries.
“I think he’s going to work something out with them,” Lutnick said. “Somewhere in the middle will likely be the outcome, the president moving with the Canadians and Mexicans, but not all the way.”
The tariffs, which took effect just after midnight on Tuesday, have sparked concerns of a broader trade conflict, with Canada and Mexico warning of retaliatory measures. The White House has framed the levies as part of its strategy to curb illicit fentanyl trafficking and secure economic advantages for American industries.
Trump’s potential announcement comes amid broader economic uncertainty, as the administration also raised tariffs on Chinese goods to 20%, further escalating tensions with key trading partners.