(The Center Square) – President Donald Trump could announce trade compromises with Canada and Mexico as soon as Wednesday, Commerce Secretary Howard Lutnick said.
“We’re going to probably be announcing that tomorrow,” Lutnick said during an interview with Fox Business. “So somewhere in the middle will likely be the outcome, the president moving with the Canadians and Mexicans but not all the way.”
Trump hit Canada and Mexico with 25% tariffs on imported goods Tuesday and added an additional 10% duty on imports from China. He said he would keep the tariffs in place until Canada and Mexico tighten up border security to stop the flow of migrants and illegal drugs. Trump has also blamed China for it’s role in the illicit trade of the chemicals used to make fentanyl, a potent opioid behind most of the overdose deaths in the U.S.
Trump first put tariffs on the three countries on Feb. 1, but paused the punitive trade measures for 30 days two days later after getting minor border concessions from both Mexico President Claudia Sheinbaum and Canada Prime Minister Justin Trudeau.
The deployment and pause of tariffs in February whiplashed global financial markets.
Lutnick’s comment suggest another shock could be in store for U.S. markets after two days of losses. Trump’s 25% tariffs on imported goods from Mexico and Canada took effect Tuesday. Canada responded with plans to put 25% tariffs on nearly $100 billion of U.S. imports. Mexico said it would retaliate with moves to be announced Sunday. China filed a complaint with the World Trade Organization.
“Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president is listening because you know he’s very, very fair and very reasonable,” Lutnick told Fox Business. “So I think he’s going to work something out with them.”
