US Commerce Secretary Howard Lutnick has hinted that President Donald Trump might announce a deal to reduce tariffs on Canada and Mexico soon. In a recent interview, Lutnick mentioned that officials from both countries were eager to discuss ways to improve efforts against fentanyl smuggling into the US.
However, Canada’s Foreign Affairs Minister, Mélanie Joly, stated that her office had not been contacted about any tariff reduction plans. Recently, Canada and Mexico imposed retaliatory tariffs on US goods as a response to the new 25% tariffs from the US that took effect on Tuesday.
Lutnick expects that these tariffs will be lowered rather than just paused. He believes that Trump will look for a compromise involving enhanced cooperation from Canada and Mexico on various issues.
Despite Lutnick’s optimism, Joly pointed out that only President Trump has the final say on decisions like this. Reports indicate that Lutnick previously spoke with Ontario Premier Doug Ford, warning him about Canada’s retaliation and any personal attacks on Trump.
On the same day, Canadian Prime Minister Justin Trudeau criticized the US tariffs, calling them a “very dumb thing.” He promised to protect Canada’s economy and introduced retaliatory tariffs on American exports, highlighting the potential costs of a trade war for both nations.
In response, Trump took to social media, warning that any Canadian retaliatory tariffs would lead to equal increases in US tariffs. Trudeau responded strongly, rejecting any notion that Canada could become the 51st state, stating, “That is never going to happen.”
The trade tensions don’t stop there. The US also intensified its trade war with China, implementing a new 10% tariff on Chinese imports. This adds to the existing tariffs from Trump’s earlier term. In response, China indicated it would retaliate against US agricultural imports, setting the stage for continued conflict.
