Trump will ‘probably’ cut US and Canada tariffs – US commerce chief

In a recent development, U.S. Commerce Secretary Howard Lutnick indicated that President Donald Trump may consider reducing tariffs on imports from Canada and Mexico. This potential policy shift comes in the wake of heightened trade tensions between the United States and its North American neighbors.

Earlier, the Trump administration imposed 25% tariffs on imports from Canada and Mexico, citing concerns over drug trafficking and illegal immigration. These measures prompted swift retaliatory actions: Canada implemented similar tariffs on $155 billion worth of U.S. goods, while Mexico announced plans for its own countermeasures.

The escalating trade war has raised alarms about potential economic repercussions, including increased inflation, disrupted supply chains, and dampened consumer spending. Financial markets have reacted negatively, with significant declines observed in major U.S. stock indexes. The S&P 500, for instance, experienced a 1.2% drop, erasing all gains since Election Day. 

Amid these tensions, Secretary Lutnick suggested that President Trump might announce a compromise on tariffs with Canada and Mexico soon. This prospect has provided a glimmer of hope for markets, which have shown signs of stabilization following Lutnick’s remarks.

In Canada, the tariffs have sparked public outcry and a surge in national solidarity. Instances of Canadian sports fans booing the U.S. national anthem during games highlight the growing discontent. Prime Minister Justin Trudeau has called for national unity, urging Canadians to support each other during these challenging times.

As discussions continue, stakeholders on all sides are closely monitoring the situation, hopeful that a resolution can be reached to mitigate further economic fallout and restore stability to North American trade relations.