Trump Will Most Likely Lower Tariffs on Canada and Mexico, US Commerce Secretary Lutnick Says

Trump would “probably” announce a deal to lower tariffs on Canada and Mexico in the face of trade concerns, according to US Commerce Secretary Lutnick.

President Donald Trump is expected to “probably” announce a deal to lower tariffs on Canada and Mexico on Wednesday, according to US Commerce Secretary Howard Lutnick, as trade tensions between the three countries continue to rise.

Canada and Mexico have been in talks with him all day, Lutnick told Fox Business Network, proposing pledges to step up efforts to stop the flow of the synthetic drug fentanyl into the US in exchange for tariff relief.

“To demonstrate that they will perform better, the Mexicans and Canadians spoke with me on the phone all day today,” Lutnick said. Trump was likely to adopt a flexible stance, he suggested. “You do more, and I’ll meet you in the middle somehow,” I believe [Trump] will decide. And we’re most likely going to make that announcement tomorrow.

In contrast to Lutnick’s statements, Canada’s Minister of Foreign Affairs Mélanie Joly said that no one has gotten in touch with her office regarding a possible agreement.

Joly stated, “President Trump is the only one who actually makes a decision, regardless of what other US officials say.”

Washington’s 25% tariff on imports from Canada and Mexico on Tuesday has heightened tensions between the US and its trading allies in North America. The rapid announcement of retaliatory import duties by both nations in response raised fears of a full-scale trade war.

Justin Trudeau, the prime minister of Canada, was unreserved in his denunciation of Trump’s tariffs, calling them a “very dumb thing to do” and promising to fight back. Raising trade disputes would be “costly for both countries,” he said, and he announced fresh duties on US products.

Trudeau’s warnings, however, seemed to have no effect on Trump. He wrote in a post on his Truth Social platform:

“Please inform Canadian Governor Trudeau that our reciprocal tariff will instantly rise by an equivalent amount if he imposes a retaliatory tariff on the United States.”

The US president was accused by Trudeau of trying to destroy Canada’s economy in order to facilitate its annexation. “That will never occur. He informed reporters that we would never become the 51st state.

The Globe and Mail was informed by sources that Lutnick had spoken with Ontario Premier Doug Ford, warning him against Canadian reprisals and what the Trump administration perceived as personal assaults on the president.

The growing trade conflict between North America coincided with Washington’s economic stalemate with China. A new 10% tax on Chinese imports went into effect on Tuesday, joining tariffs that were already in place during Trump’s first term and others that were announced last month.

In response, Beijing imposed duties of its own on US agricultural imports, saying, “China will fight to the bitter end of any trade war,” according to a spokesman for the Chinese foreign ministry.

Both US allies and enemies are braced for more disruptions as the world economy continues to be unstable as Trump gets ready to address the tariff situation on Wednesday.