Trump Expected to Announce Tariff Reductions for Canada and Mexico

Amid escalating trade tensions, US Commerce Secretary Howard Lutnick suggests President Trump may soon announce reductions to tariffs imposed on Canada and Mexico. However, Canadian officials question the validity of these claims, indicating further diplomatic discussions are necessary.

US Commerce Secretary Howard Lutnick has indicated that President Donald Trump will "probably" unveil a plan to cut tariffs on imports from Canada and Mexico during a press briefing on Wednesday. Lutnick, in an interview with Fox Business Network, stated that both Canadian and Mexican officials had reached out multiple times, expressing their commitment to addressing the flow of the synthetic opioid fentanyl into the United States.

However, Canada's Minister of Foreign Affairs, Mélanie Joly, reported that her office had not received any direct communication regarding a potential tariff reduction plan. Both Canada and Mexico recently enacted retaliatory tariffs in response to the 25% tariffs imposed by the U.S. on imports from both countries, which took effect earlier this week.

Lutnick emphasized his expectation that the U.S. tariffs would be reduced rather than simply paused. He remarked, "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." Meanwhile, Joly underscored that only President Trump possesses the authority to finalize such decisions.

In a related call, Lutnick reportedly warned Ontario Premier Doug Ford about potential Canadian retaliatory measures and mentioned claims of personal attacks directed at Trump. During his recent address to Congress, Trump highlighted his trade strategies but refrained from specifying his plans for the newly imposed tariffs.

Canadian Prime Minister Justin Trudeau condemned the tariffs during his own remarks, labeling them as "a very dumb thing to do," and committed to a vigorous defense of Canada's economy. He announced retaliatory tariffs on U.S. goods, cautioning about the potential consequences of a trade war on both nations.

Trump responded through social media, urging Trudeau to understand that any retaliatory tariffs from Canada would invoke a matching response from the U.S. Trudeau responded firmly, assuring that Canada would not become "the 51st state," effectively dismissing thoughts of a diminished Canadian economy.

The escalation of trade disputes is not limited to North America, as Washington is also intensifying its economic confrontation with Beijing. A fresh 10% tariff on Chinese imports has come into effect, compounding existing tariffs from previous administrations. In response, Chinese officials indicated they would engage in counter measures, firmly declaring their willingness to continue the trade conflict.