He’s Going to Work Something Out: US Commerce Secretary Hints Trump May Ease Tariffs on Canada and Mexico- wna24

Washington: US President Donald Trump has signaled possible tariff rollbacks as concerns grow over the economic impact of his trade war with Canada, Mexico, and China. The move follows reports of salary cuts across several industries due to rising costs linked to import taxes. With global markets reacting sharply, the administration is now considering adjustments to its aggressive trade stance.  

Trump recently announced 25% tariffs on Canadian and Mexican imports, with a 10% levy on Canadian energy products. The decision, which initially sent shockwaves through financial markets, was followed by a separate move to double tariffs on Chinese goods to 20%. However, the economic fallout has led to internal discussions about easing some of these measures.  

Commerce Secretary Howard Lutnick hinted at possible modifications, saying, “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 is listening.” Sources suggest that Trump could announce a reduction or removal of certain tariffs as early as Wednesday.  

Canada and Mexico wasted no time in responding. Canadian Prime Minister Justin Trudeau declared that his government would impose tariffs on over $100 billion worth of US goods within 21 days. Mexican President Claudia Sheinbaum announced similar measures, with retaliatory tariffs set to take effect this Sunday.  

China, already embroiled in trade tensions with Washington, expanded its countermeasures, imposing up to 15% tariffs on American agricultural products and placing additional restrictions on two dozen US companies. These swift responses have put further pressure on Trump’s administration to reconsider its stance.  

Trump has long championed tariffs as a tool to negotiate “fairer” trade deals. “Import taxes are a very powerful weapon that politicians haven’t used because they were either dishonest, stupid, or paid off in some other form,” he said.  

However, faced with rising inflation and economic uncertainty, he is now weighing adjustments. Sources say his upcoming address to Congress could include an announcement on tariff reductions, particularly for key sectors facing cost pressures.  

The trade dispute has rattled investors, with stock markets experiencing sharp fluctuations. Economists warn that a prolonged standoff could slow economic growth and worsen inflation—risks that could impact Trump’s political standing ahead of the next election.  

With businesses and workers feeling the pinch, Trump appears open to revising his approach. While his allies argue the tariffs will eventually lead to better trade terms, critics warn that American consumers may bear the brunt of the costs.  

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For now, the world waits to see if Trump will soften his stance—or escalate tensions further.