Commerce Secretary Howard Lutonic said he may announce a compromise between Canada and Mexico the day after President Trump imposed a 25% tariff on two neighboring countries.
Lutonic He told Fox Business He spoke to Canadians and Mexicans on the phone on Tuesday, and both countries told him, “They'll do better.”
“I think he'll work out something with them,” Lutnick said, referring to Trump.
He added: Somewhere in the center is probably the outcome, and the president is moving alongside Canadians and Mexicans, but not for a long time. ”
Trump, which implements a 25% tariff, has warned that it could lead to retaliation measures from both countries, leading to potential rise in prices for consumers.
The stock market opened on Tuesday with losses. The Dow Jones industrial average fell 431 points after the opening bell, losing 1% at the start of trading Tuesday. The S&P 500 index fell by 0.9%, while the Nasdaq composite fell by 0.7%.
The president had previously delayed implementation a month after Canada and Mexico agreed to strengthen border security efforts. Trump said Monday there was no room for further transactions before tariffs come into effect in the middle of the night.
Canadian Prime Minister Justin Trudeau on Tuesday promised that his government would protect citizens and businesses from tariffs and acquisitions, and Trump responded by threatening additional taxes to Canada if US neighbours retaliate. And Mexican President Claudia Sinbaum warned that he would announce retaliatory tariffs on Sunday.
