ilfede / Depositphotos.com
WASHINGTON, March 4 (Reuters) – U.S. Commerce Secretary Howard Lutnick told Fox Business on Tuesday that President Donald Trump will reach a middle ground with Canada and Mexico on tariffs, and an announcement to that effect was expected on Wednesday.
Trump’s new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%. The move has sparked trade wars that could slam economic growth and lift prices for Americans still smarting from years of high inflation.
Canadian Prime Minister Justin Trudeau told Trump on Tuesday that his tariffs on Canadian imports were “a very dumb thing to do” and said Ottawa was striking back immediately at its closest ally.
“Now, 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,” Lutnick said.
“So I think he’s going to work something out with them. It’s not going to be a pause … but I think he’s going to figure out you do more, and I’ll meet you in the middle somewhere, and we’re going to probably be announcing that tomorrow,” he said.
The tariff actions, which look set to upend nearly $2.2 trillion in annual U.S. trade with its top three trading partners, went live at 12:01 a.m. (0501 GMT). Trump declared that all three countries had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the U.S.
Comments