Trump Set to Announce Tariff Reductions for Canada and Mexico

President Trump's anticipated updates on trade tariffs for Canada and Mexico signal possible reductions following discussions focused on issues like opioid trafficking, despite current public disagreements and tensions over tariffs.

US Commerce Secretary Howard Lutnick has indicated that President Donald Trump is likely to unveil a plan to decrease tariffs on both Canada and Mexico this Wednesday. Speaking during an interview on Fox Business Network, Lutnick mentioned that he had been in contact with officials from both neighboring countries, who expressed their willingness to enhance efforts in curtailing the influx of synthetic opioids such as fentanyl into the United States.

However, Canada’s Minister of Foreign Affairs, Mélanie Joly, contradicted this assertion, claiming her office had not received any communication regarding the proposed tariff reductions. Just recently, both Canada and Mexico enacted retaliatory tariffs on US goods following the implementation of US tariffs, which stand at 25% as of Tuesday.

Lutnick conveyed his expectation that tariffs would be reduced instead of just paused, suggesting a middle ground could be found. "I think [Trump’s] going to figure out, 'you do more, and I’ll meet you in the middle some way.' And we're probably going to be announcing that tomorrow," he stated.

In response to these developments, Joly pointed out that while US officials might make various claims, the ultimate decision lies with President Trump himself. Sources revealed that Lutnick had also spoken with Ontario Premier Doug Ford, delivering warnings about potential Canadian retaliation and comments viewed as personal attacks directed at Trump.

In a separate incident, Canadian Prime Minister Justin Trudeau criticized the US tariffs, calling them shortsighted and promising a staunch defense of Canada’s economy through retaliatory measures. Trudeau articulated concerns about Trump’s aggressive stance, warning that a trade war could severely affect both nations.

In a recent post on his social media platform Truth Social, Trump underscored the reciprocal nature of tariffs, stating that any retaliatory tariffs imposed by Canada would lead to an equal increase in US tariffs. This ongoing tension was further complicated by the US's expanded trade conflict with China, which recently instituted a new 10% tariff on US imports amidst escalating hostilities.

As the situation develops, it remains to be seen how the negotiations will unfold and the broader impact on international trade relations.