Lutnick Hints at Tariff Deal with Canada and Mexico by Tomorrow

Commerce Secretary Howard Lutnick has revealed that talks with Canada and Mexico are advancing with a potential tariff deal announcement slated for tomorrow. Speaking to Fox Business Lutnick indicated President Donald Trump aims to find a middle ground after imposing steep 25 percent tariffs on both nations effective today. The move follows Trump’s aggressive trade strategy aimed at curbing illegal immigration and fentanyl trafficking across U.S. borders.

Lutnick emphasized that Canadian and Mexican officials were in constant contact with him throughout the day pushing to soften the tariff blow. He suggested Trump is open to compromise noting the president’s reputation for fairness and reason in negotiations. This comes after the tariffs sparked immediate retaliation from Canada with Prime Minister Justin Trudeau imposing reciprocal duties.

The commerce secretary predicted an agreement could ease tensions by Wednesday potentially sparing goods covered under the U.S.-Mexico-Canada trade pact. Trump imposed the tariffs overnight citing border security concerns particularly the flow of drugs and illegal aliens from both countries. Lutnick hinted that any deal would require stronger action from Canada and Mexico on these fronts.

Canadian Premier Doug Ford upped the ante today by slapping a 25 percent tax on electricity exports to three U.S. states. He warned of a complete cutoff if Trump’s tariffs persist signaling a tough stance from Ottawa. Mexico has also threatened countermeasures though specifics remain unclear as talks with Lutnick continue.

Business leaders have warned that prolonged tariffs could spike prices for American consumers impacting everything from cars to groceries. Major retailers are already bracing for higher costs as supply chains adjust to the new duties. Lutnick downplayed these fears arguing that a swift resolution would mitigate economic fallout.

Trump’s team appears buoyed by the rapid response from Canada and Mexico viewing it as proof the tariffs are forcing action. Lutnick stressed that the president will not fully back off but is willing to meet halfway if progress is made on border issues. This pragmatic approach could preserve trade ties while advancing Trump’s America-first agenda.

Congressional critics have blasted the tariffs as reckless with some Democrats vowing to fight them through legislation. Representative Gregory Meeks is reportedly drafting resolutions to end the national emergency Trump used to justify the duties. The White House seems undeterred banking on a deal to quiet dissent.

If Lutnick’s timeline holds tomorrow’s announcement could mark a rare win for diplomacy in Trump’s trade war. Failure to reach an accord risks escalating tensions with two of America’s closest allies and trading partners. For now all eyes are on the commerce secretary as he navigates this high-stakes negotiation.