Commerce Secretary Howard Lutonic said the announcement could come Wednesday afternoon, as he believes President Trump may consider tariff relief in Canada and Mexico to compromise.
“The president has heard offers from Mexico and Canada. He's thinking he's going to do something in the middle,” Rutnick said Wednesday. Bloomberg TV.
He adds that he is talking to Trump about reducing tariffs on 25% in his neighbours, and believes, “We're going to announce this afternoon, or this afternoon.”
Lutnick's comments come a day after the tariff plan was implemented, sparking a trade war with US allies, raising concerns that prices for Americans would rise.
His comments walk back to Trump's confirmation that tariffs are in place to curb the flow of migration and fentanyl.
Lutnick doesn't think the next plan will be a perfect 25%, but he said “it's somewhere in the middle because I think Mexico and Canada are doing their best.”
After Trump announced tariffs shortly after taking office, he signed a deal with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau to suspend a month-long plan to give him time to coordinate at their US borders. The taxation was officially enacted on Tuesday, with both leaders saying they are planning their own tariffs for the US.
Lutnick said international officials are “working hard” with the US Department of Homeland Security to support the situation, but repeated the previous points he made that it was not a trade war, but rather a “drug war.”
“So what happened, they show us more ways to stop the flow of fentanyl. The president is open-minded,” he said. “There are customs duties. Let's be clear.”
Lutnick's remarks over the past few days indicate “the fluid situation.” They differ from the president's comments that showed strong support for the tariff plans to be implemented.
On Tuesday, the Commerce Secretary said he spoke to Canadian and Mexican officials over the phone, and both countries told him “we'll do better.” He said that Trump thought he would “settle something” with both countries, but that tariffs would be incurred again, but that they may be less than the original proposal.
