The Blubber

Trump Administration Nears Tariff Compromise with Canada and Mexico, Commerce Secretary Says

President Donald Trump will “probably” announce new tariff compromise deals with Canada and Mexico soon, Commerce Secretary Howard Lutnick said on Tuesday.

The agreements would likely involve scaling back at least some of Trump’s newly reinstated 25% tariffs on imports from Mexico and Canada, he added.

Lutnick’s remarks came minutes after U.S. markets closed lower for the second straight day, as investors feared that Trump’s aggressive trade policies could spark a damaging trade war.

Following his comments, U.S. stock futures rose across all three major indices.

Speaking on Fox Business, Lutnick said the compromise agreements could be revealed as early as Wednesday.

Trump’s Trade Tactics & Tariff Negotiations

The Trump administration reimposed sweeping 25% tariffs on Mexican and Canadian imports on Tuesday, following a one-month pause.

Trump has framed the tariffs as a powerful negotiating tool, citing Canada and Mexico’s failure to curb drug trafficking and crime as the justification for their reinstatement.

“Both the Mexicans and the Canadians have been on the phone with me all day, trying to show that they’ll do better,” Lutnick said Tuesday afternoon.

“The President is listening because, you know, he’s very, very fair and very reasonable. So I think he’s going to work something out with them,” he added.

Lutnick suggested that the compromise deal would involve Canada and Mexico committing to “do more”, at which point Trump would be willing to “meet in the middle.”

“We’re probably going to be announcing that tomorrow,” he said.

However, Lutnick made it clear that Trump would not fully lift the tariffs, nor would the announcement simply be another temporary pause.

Trump’s Primetime Address Looms

Lutnick’s comments came just hours before President Trump was set to deliver a primetime address to a joint session of Congress—where trade and tariffs are expected to be a major focus.