After Market Backlash, Lutnick Says Trump May Ease Canada, Mexico Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Commerce Secretary Howard Lutnick suggested on Wednesday that the Trump administration may introduce exemptions to the new 25% tariffs on imports from Canada and Mexico. The sudden shift comes amid market instability, inflation concerns, and growing backlash from Canada, China, and Mexico. President Donald Trump is expected to clarify the tariff adjustments in an afternoon announcement, with some industries, like automobiles, possibly receiving relief.
Trump’s Canada & Mexico Tariffs: Quick Look
- Tariff Changes?: Trump may ease trade restrictions on some sectors.
- Stock Market Impact: Markets fell sharply, wiping out post-election gains.
- Retaliation Begins: Canada & China imposed counter-tariffs; Mexico plans response.
- Trump’s Next Move: April 2 set for additional “reciprocal” tariffs.
- Lutnick’s Take: Negotiations are underway, and exemptions are possible.
- Trudeau’s Response: Calls Trump’s tariffs a betrayal, vows retaliation.
After Market Backlash, Lutnick Says Trump May Ease Canada, Mexico Tariffs
White House Signals Possible Adjustments
Speaking with Bloomberg Television on Wednesday, Lutnick said:
“There are going to be tariffs, let’s be clear. But he’s thinking about which sections of the market… he’ll consider giving relief.”
While Trump remains committed to his trade policy, growing concerns about inflation, economic slowdown, and stock market volatility may be forcing a shift.
Trump’s Next Announcement: More Tariffs or Relief?
Trump is expected to update his tariff strategy during an afternoon press conference. According to Lutnick, some industries—such as autos—may receive exemptions.
- April 2 Deadline: Trump still plans to introduce additional “reciprocal” tariffs that match foreign taxes on U.S. goods.
- New Negotiations: Lutnick confirmed that Trump is in talks with Canada and Mexico about addressing border security and drug smuggling concerns.
Stock Market in Turmoil
- Investors reacted negatively to the tax hikes, fearing they would increase costs for businesses and consumers.
- Tuesday’s market crash may have pushed the administration to reconsider aspects of its trade policy.
Retaliation Begins: Canada & China Hit Back
Canada, China, and Mexico have already responded to Trump’s tariffs with their own economic measures:
- Canada’s Response: Prime Minister Justin Trudeau announced $100 billion in tariffs on U.S. goods.
- China’s Response: Beijing raised tariffs on U.S. agricultural products like soy, beef, and pork.
- Mexico’s Plan: President Claudia Sheinbaum plans to announce Mexico’s retaliatory tariffs on Sunday.
“The United States launched a trade war against Canada, their closest partner and ally,” Trudeau said.
“At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.”
Trump: ‘A Little Disturbance’ Won’t Hurt the Economy
During his Tuesday night address to Congress, Trump downplayed the economic risks of his tariff policy:
“There may be a little bit of an adjustment period, but you have to bear with me.”
He argued that the tariffs will ultimately benefit American farmers and strengthen U.S. manufacturing.
However, economists warn that Trump’s tariff hikes could drive up inflation, slow growth, and hurt businesses that rely on cross-border trade.
What’s Next?
- Trump’s Wednesday Announcement: Expected to clarify possible tariff exemptions.
- April 2 Tariffs: The second round of “reciprocal” trade penalties could expand tariff rates worldwide.
- Mexico’s Sunday Response: Will detail countermeasures against U.S. tariffs.
With pressure mounting from global markets and trade partners, the Trump administration may be forced to reconsider its aggressive tariff strategy—but how far they will backtrack remains uncertain.
You must Register or Login to post a comment.