President Donald Trump's administration could announce as early as tomorrow a path toward tariff relief for Mexican and Canadian goods included in the T-MEC, according to Commerce Secretary Howard Lutnick. "Both the Mexicans and Canadians have been calling me all day today trying to demonstrate that they'll do a better job, and the president is listening because they know it’s very, very fair and reasonable," Lutnick shared in an interview with Fox Business.
"So I believe Trump will reach an agreement with Mexico and Canada. It will not be a pause, none of that pause issue, but I think he’s going to find a solution: you do more and I will meet you at some middle ground somehow, and we’ll probably announce it tomorrow," added the Commerce Secretary.
Lutnick did not explicitly specify what President Donald Trump is considering after imposing a broad tariff on all goods from Canada and Mexico, which took effect overnight. The Commerce Secretary mentioned that the tariffs would likely be "at some midpoint," with Trump moving along with the Canadians and Mexicans, but not completely. He dismissed the idea that the tariffs would be eliminated altogether, instead pointing to the United States-Mexico-Canada trade deal negotiated during Trump’s first term. "If you comply with those rules, then the president is considering giving you relief," Lutnick said. "If you haven't complied with those rules, well, then you'll have to pay the tariff."
Lutnick's comments were the first public signal since the tariffs were imposed that Trump may be wavering, after global stocks fell following the administration’s announcement of the largest set of new tariffs in nearly a century. From New York to London and Tokyo, stock markets fell, with the S&P 500 returning to pre-election levels. Trump had previously delayed the tariffs for Canada and Mexico by a month before allowing them to move forward.
