US Commerce Secretary Howard Lutnick has suggested that President Donald Trump will “probably” announce a deal on Wednesday to reduce tariffs on Canada and Mexico, as trade tensions between the three nations continue to escalate.
Lutnick, speaking to Fox Business Network, said both Canada and Mexico had been in discussions with him throughout the day, offering commitments to strengthen efforts to curb the flow of the synthetic opioid fentanyl into the US in exchange for tariff relief.
“Both the Canadians and Mexicans were on the phone with me all day today trying to show that they’ll do better,” Lutnick stated. He added that Trump was likely to take a flexible approach. “I think [Trump’s] going to figure out, ‘you do more, and I’ll meet you in the middle some way.’ And we’re probably going to be announcing that tomorrow.”
However, Canada’s Minister of Foreign Affairs Mélanie Joly contradicted Lutnick’s remarks, stating that her office had not been contacted about any potential deal.
“US officials can say many things, but the only one that really takes a decision is President Trump,” Joly said.
Tensions between the US and its North American trading partners have intensified since Washington imposed a 25% tariff on Canadian and Mexican imports on Tuesday. In response, both countries swiftly announced retaliatory import levies, prompting concerns of a full-scale trade war.
Canadian Prime Minister Justin Trudeau did not mince words in his criticism of Trump’s tariffs, calling them a “very dumb thing to do” and vowing to fight back. He announced new tariffs on US exports and warned that escalating trade conflicts would be “costly for both countries.”
Trump, however, appeared unmoved by Trudeau’s warnings. In a post on his Truth Social platform, he wrote:
“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!”
Trudeau, in turn, accused the US president of attempting to cripple Canada’s economy to pave the way for its annexation. “That is never going to happen. We will never be the 51st state,” he told reporters.
Meanwhile, sources told The Globe and Mail that Lutnick had held a call with Ontario Premier Doug Ford, warning against Canadian retaliation and what the Trump administration viewed as personal attacks on the president.
The escalating North American trade dispute came as Washington also intensified its economic standoff with China. On Tuesday, a new 10% levy on Chinese imports took effect, adding to existing tariffs imposed during Trump’s first term and others announced last month.
Beijing responded with its own tariffs on US agricultural imports, with a Chinese foreign ministry spokesperson declaring, “China will fight to the bitter end of any trade war.”
As Trump prepares to address the tariff situation on Wednesday, the global economic landscape remains volatile, with US allies and adversaries alike bracing for further disruptions.
Follow us on:
