Trump Poised to Reduce Tariffs on Canada and Mexico Amid Trade Tensions

President Trump is expected to announce reduced tariffs on Canada and Mexico on Wednesday, as international trade tensions escalate. US Commerce Secretary Howard Lutnick indicated during an interview that discussions with officials from both countries have been ongoing, though Canadian officials claim they have not been contacted regarding any new plans.

US Commerce Secretary Howard Lutnick expressed confidence that President Donald Trump will "probably" reveal a plan to reduce imposed tariffs on Canada and Mexico, as tensions over trade escalate. In a recent interview with Fox Business Network, Lutnick noted that officials from both countries were in constant communication, attempting to address the opioid crisis by combating the flow of synthetic opioids, particularly fentanyl, into the US.

Despite Lutnick’s assertions, Canada’s Minister of Foreign Affairs Mélanie Joly informed the BBC that her office had received no notification regarding such tariff reductions. The trade relationship has become increasingly strained, particularly after Canada and Mexico initiated retaliatory tariffs against the US in response to the recently imposed 25% tariffs on imports from both nations.

Lutnick anticipated that the US tariffs would be lowered, hinting at a possible middle ground regarding trade negotiations. "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. However, Joly cautioned that while US officials can make declarations, only Trump has the ultimate decision-making authority.

Lutnick also communicated directly with Ontario Premier Doug Ford, discussing potential backlash from Canada due to perceived personal attacks against Trump. At the same time, Prime Minister Justin Trudeau openly criticized Trump's tariffs, labeling them "very dumb" and reaffirmed his commitment to protecting Canada’s economy through retaliatory tariffs on US exports.

Expressing further frustration through social media, Trump warned that any retaliatory tariffs imposed by Trudeau would prompt an equivalent reciprocal tariff increase from the US. Trudeau countered that Trump’s rhetoric suggested intentions to undermine Canada’s economy, asserting, "We will never be the 51st state."

Ratcheting up the tensions further, the US administration also announced new tariffs targeting China, adding a 10% levy on imports. Chinese officials responded by denouncing the US measures and indicated their willingness to fight against any trade war repercussions, solidifying the ongoing trade conflict with the US.