President Donald Trump is expected to announce changes on Wednesday to the sweeping tariffs imposed on Mexico and Canada, Commerce Secretary Howard Lutnick said. The administration may exempt certain goods, including cars that meet U.S.-Mexico-Canada Agreement (USMCA) standards, from the 25 percent tariff.
Lutnick first hinted at the possibility of modifying the tariffs in an interview with Fox Business’s Larry Kudlow Tuesday afternoon, just hours before Trump’s address to Congress, saying that the president is interested in meeting “somewhere in the middle.”
“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. “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.”
In a subsequent interview with Bloomberg TV on Wednesday, Lutnick said President Trump remains focused on reducing fentanyl smuggling into the U.S. and will continue using tariffs to pressure Mexico and Canada into cooperating on border security.
Lutnick also reiterated that the White House remains committed to imposing reciprocal tariffs on imports from other nations, describing the move as part of a broader effort to ensure “fairness” in U.S. trade relationships. Those tariffs will be announced on April 2, he said, though some may not take effect for several weeks or months.
“There are going to be tariffs — let’s be clear — but what [Trump] is thinking about is which sections of the market he may consider giving relief to until we get to, of course, April 2,” Lutnick said. “I think it is going to be in the middle somewhere.”
While the 25 percent tariffs on imported goods will remain in place, Lutnick said the administration is considering exemptions for products that comply with USMCA provisions. Automobiles are a possible candidate, as most North American automakers appear to meet the agreement’s regional content requirements, he said. The secretary did not specify whether other industries might also qualify for exemptions.
The remarks suggest that the Trump administration is open to negotiating with Canada and Mexico on trade while keeping the pressure on both countries over border security and fentanyl trafficking.
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