Wed, 05 Mar 2025

Wed, 05 Mar 2025 Trump will 'probably' cut Mexico and Canada tariffs - US commerce chief

Canada's Minister of Foreign Affairs told the BBC's Newsnight her office had not been contacted about the plan.
US Commerce Secretary Howard Lutnick has hinted that President Donald Trump may announce a deal to reduce tariffs on Canada and Mexico as early as Wednesday. Lutnick said both countries had been in touch with him, trying to show they would do more to address US concerns over fentanyl trafficking. However, Canada's Foreign Affairs Minister Mélanie Joly denied receiving any communication from the US about the potential agreement. Canada and Mexico had previously announced retaliatory tariffs on US goods after the US imposed 25% tariffs on their exports. Lutnick said he expected the US to lower its tariffs rather than suspend them. "I think [Trump's] going to figure out, 'you do more, and I'll meet you in the middle some way,'" he said. This comes as tensions between Canada and Mexico and the US continue to escalate. Canadian Prime Minister Justin Trudeau had condemned Trump's tariffs as a "very dumb thing to do" and vowed to fight back through trade measures. Trump responded by warning that any retaliatory tariffs would trigger a reciprocal increase in US tariffs on Canadian goods. The two countries are also engaged in a separate trade dispute, with Canada imposing new tariffs on US steel and aluminum exports. Meanwhile, the US has imposed a 10% tariff on Chinese imports, which took effect on Tuesday, adding to existing levies from previous rounds of trade tensions.
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