Commerce Secretary Lutnick Hints at Canada, Mexico Tariffs Compromise

KEY TAKEAWAYS

• Commerce Secretary Howard Lutnick hinted at a compromise and a scaling back of the 25% tariffs imposed by Washington on Canada and Mexico on Tuesday.
• Lutnick told reporters after President Donald Trump stuck with his pro-tariff stance in his address to a joint session of Congress Tuesday night that the administration would “probably” announce a deal to cut the tariffs Wednesday, The Wall Street Journal reported.
• In an earlier interview with Fox Business before Trump’s address, Lutnick said Trump would “come in the middle” with Mexico and Canada.

Commerce Secretary Howard Lutnick hinted at a compromise and a scaling back of the 25% tariffs imposed by Washington on Canada and Mexico on Tuesday.

Lutnick told reporters after President Donald Trump stuck with his pro-tariff stance in his address to a joint session of Congress Tuesday night that the administration would “probably” announce a deal to cut the tariffs Wednesday, according to The Wall Street Journal.

In an interview with Fox Business before Trump’s address, Lutnick said Trump would “come in the middle” with Mexico and Canada.

“He’s really looking carefully at that trying to figure out if there is a way in there that he can come in the middle, where he can give the Canadians and Mexicans something, but they have to got do more,” Lutnick said.

“It’s not gonna be a pause. None of that pause stuff. But I think he’s going to figure out, you do more, and I’ll meet you in the middle someway,” Lutnick added. “We’re going to probably be announcing that tomorrow. So somewhere in the middle will likely be the outcome—the president moving with the Canadians and Mexicans but not all the way.”

U.S. stock futures are rising after indexes closed sharply lower Tuesday as investors worried that the imposition of the tariffs, including a doubling of levies on goods from China, would hurt the U.S. economy and reignite inflation.

In his address to Congress Tuesday night, Trump acknowledged the possibility for disruption but said the tariffs are necessary. “Tariffs are not just about protecting American jobs, they’re about protecting the soul of our country,” Trump said.