Commerce Secretary Howard Lutnick said President Trump may announce a compromise with Canada and Mexico on Wednesday, the day after he imposed 25 percent tariffs on the two neighboring countries.
Lutnick told Larry Kudlow of Fox Business News’s “Kudlow” that he spoke to Canadian and Mexican officials on the phone on Tuesday and that both countries told him “they’ll do better.”
“I think he’s going to work something out with them,” Lutnick said, referring to Trump.
He added, “It’s not going to 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 and we’re going to probably be announcing that tomorrow. Somewhere in the middle will likely be the outcome, the president moving with the Canadians and Mexicans but not all the way.”
Trump implementing 25 percent tariffs triggered retaliatory measures from both nations, with major corporations also warning that it could lead to potential price increases for consumers.
The stock market opened Tuesday with losses; the Dow Jones Industrial Average was down 431 points after the opening bell, losing 1 percent at the start of Tuesday trading. The S&P 500 index was down 0.9 percent and the Nasdaq composite was down 0.7 percent.
The president had previously delayed tariff implementation by a month after Canada and Mexico agreed to step up border security efforts. Trump said on Monday there was no room for further dealmaking before the tariffs went into effect at midnight.
Canadian Prime Minister Justin Trudeau on Tuesday promised that his government will protect its citizens and businesses from attacks and takeovers from the tariffs, and Trump responded by threatening additional taxes on Canada if the U.S.’s northern neighbor retaliates. And, Mexican President Claudia Sheinbaum warned that she will announce retaliatory tariffs on Sunday.
