President Donald Trump is scheduled to announce drastic changes to tariffs imposed on Mexico and Canada on Wednesday, Commerce Secretary Howard Luttonick said. The administration may exempt certain items from 25% tariffs from certain items, including vehicles that meet US Mexico and Canada Agreement (USMCA) standards.
In an interview with Bloomberg TV, Lutnick said President Trump's focus on reducing fentanyl smuggling to the United States and will continue to use tariffs to pressure Mexico and Canada to cooperate with border security.
Lutonic also reiterated that the White House has committed to impose mutual tariffs on imports from other countries, explaining the move as part of a broader effort to ensure “equality” in US trade relations. These duties will be announced on April 2nd, he said, but some may not take effect for weeks or months.
“There will be tariffs – Let's be clear – but what [Trump] Of course, until we reach April 2nd, we're thinking which section of the market he can consider giving relief,” Lutnick said. “I think it's somewhere else.”
Lutnick said that the administration is considering exemptions from products complying with USMCA regulations, although tariffs on imports will remain ongoing. Automobiles are a possible candidate as most North American car manufacturers appear to meet the agreement's regional content requirements, he said. The secretary did not specify whether other industries were eligible for exemptions either.
The remarks suggest that the Trump administration is open to negotiating with Canada and Mexico in trade, while maintaining pressure on both countries on border security and fentanyl trafficking.
