US Commerce Secretary Howard Lutnick revealed that President Donald Trump will "probably" announce a deal to reduce tariffs on Mexico and Canada, likely coming on Wednesday.
Lutnick confirmed that both countries have been in constant communication, demonstrating their commitment to addressing issues such as fentanyl trafficking.
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Potential Deal to Lower Tariffs
In an interview with Fox Business Network, Lutnick shared that both Canadian and Mexican officials were actively negotiating to improve their cooperation on reducing the flow of fentanyl into the United States.
He expressed confidence that Trump would work out a deal, likely lowering, but not halting, tariffs on the two countries. The agreement could be announced shortly after ongoing talks.
"We're probably going to be announcing that tomorrow," Lutnick said, hinting at a possible resolution. He emphasized that President Trump would ultimately decide the direction of the talks.
Canada's Response to US Tariffs
While the US administration seems optimistic about a deal, Canada’s Minister of Foreign Affairs, Mélanie Joly, contradicted Lutnick’s remarks, stating her office had not been contacted regarding any potential changes to the tariffs.
Canada and Mexico had already implemented retaliatory tariffs on US goods following Trump’s 25% import levies, which were enacted on Tuesday.
Canada’s Retaliation and Trudeau’s Remarks
Canadian Prime Minister Justin Trudeau swiftly criticized Trump’s decision, calling it a "very dumb thing to do." Trudeau vowed to protect Canada’s economy and emphasized that a trade war would be detrimental to both nations.
He also made it clear that Canada would not back down in the face of what he described as aggressive trade policies.
Trump's Hardline Stance
Trump, in his signature brash style, took to Truth Social to threaten that retaliatory tariffs by Canada would result in an immediate, equal increase in US tariffs. “Please explain to Governor Trudeau... our Reciprocal Tariff will immediately increase by a like amount!” Trump wrote, further fueling the growing tensions between the two nations.
US-China Trade War Escalates
The United States' trade war is not limited to Canada and Mexico. Trump’s administration also raised tariffs on Chinese imports, adding a 10% levy to existing tariffs on Chinese goods.
In retaliation, China imposed new tariffs on US agricultural imports, continuing the tit-for-tat trade conflict.
A Chinese foreign ministry spokesperson warned that China would continue to fight "to the bitter end" against any trade aggression.
Both nations are now engaged in a protracted economic standoff that could have lasting global repercussions.
A Critical Moment for US Trade Policy
As President Trump prepares to potentially scale back tariffs on Mexico and Canada, the international trade landscape remains uncertain.
Both sides seem to be working toward a compromise, but whether a deal is struck or the situation escalates further remains to be seen.
The ongoing trade wars, including with China, will have significant implications for global markets and the economy.
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Written By HowNHowTo.com