Gold prices steady amid Fed rate cut hopes; Trump-Putin talks awaited
Investing.com -- U.S. President Donald Trump may extend an olive branch to Mexico and Canada as soon as Wednesday, paving the way for a relief on U.S. tariffs that were imposed overnight, Commerce Secretary Howard Lutnick told Fox News on Tuesday.
“Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president’s listening, because you know he’s very, very fair and very reasonable,” Lutnick said in an interview with Fox Business.
“So I think he’s going to work something out with them — it’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more and I’ll meet you in the middle some way and we’re going to probably announcing that tomorrow.”
Lutnick’s remarks come as the United States’ 25% tariffs on imported goods from Mexico and Canada went into effect on Tuesday, drawing retaliatory measures from Canada. Mexico decided not to immediately retaliate, but said it would with details to come Sunday.
Canada’s Prime Minister Justin Trudeau said Ottawa would respond to Trump’s tariffs by introducing its own 25% levy on roughly $20 billion in U.S. goods.
The tariffs on Mexico and Canada aren’t expected be fully rolled back, but likely reflect the terms in the US-Mexico-Canada trade pact negotiated during Trump’s first term.
“If you live under those rules, then the president is considering giving you relief,” Lutnick said. “If you haven’t lived under those rules, well, then you have to pay the tariff.”
In a further sign that the Trump administration is wary of the impact of prolonged tariff uncertainty, particularly among the United States’ neighbors, Lutnick downplayed the prospect of another pause on tariffs.
Trump had previously offered Mexico and Canada a one-month delay on tariffs through Mar. 4.