U.S. Commerce Secretary Howard Lutnick said that President Donald Trump will “probably” announce reduced tariffs on Canadian and Mexican imports as early as today (March 5).
Speaking to Fox News, Lutnick said that part of Trump’s blanket 25% tariffs on imports from Canada and Mexico will be reduced a day after they came into effect.
Lutnick’s comments were made after the U.S. stock market fell sharply for a second day, with the blue-chip Dow Jones Industrial Average dropping 1,300 points over two trading sessions and the technology-laden Nasdaq nearing a 10% correction.
A compromise with Canada and Mexico could be revealed quickly, said Lutnick, adding that Trump would be willing to meet Canada and Mexico “in the middle.”
However, the U.S. Commerce Secretary ruled out removing the new tariffs entirely.
Investors have been fleeing risk assets such as stocks and cryptocurrencies as Trump imposed sweeping new import duties on Canada and Mexico, as well as tariffs of up to 20% on Chinese goods.
Economists and analysts have warned that the tariffs could lead to a global trade war that would be economically devastating for all nations involved.
However, Lutnick sought to calm jittery markets, saying that Trump is “going to work something out” with Canada and Mexico on the trade front.
Lutnick’s comments were made hours before Trump was to address a joint session of the U.S. Congress.
The benchmark S&P 500 index is now down 2% on the year and has erased all the gains it accrued after President Trump was re-elected last November.
