- Trump is likely to announce a tariff compromise with Canada and Mexico, but the details remain unclear.
- The stock market dipped for a second day, rattled by fears of an escalating trade war.
- Both countries are scrambling to negotiate as Trump insists they must “do more” to avoid full tariffs.
President Donald Trump is “probably” gearing up to announce a tariff compromise with Canada and Mexico any day now—at least, that’s what Commerce Secretary Howard Lutnick hinted at on Tuesday.
According to Lutnick, the deal will likely scale back part of Trump’s fresh 25% tariffs on imports from the two neighboring countries. But don’t expect them to disappear entirely. The announcement could come as soon as Wednesday, he casually mentioned on Fox Business.
The timing? Convenient. Just minutes before his remarks, the stock market closed in the red for the second straight day, spooked by fears of an all-out trade war. Investors weren’t thrilled about Trump’s aggressive tariff moves, and this so-called compromise might be an attempt to calm the storm—at least a little.
Earlier in the day, the Trump administration reinstated the hefty 25% tariffs on Canadian and Mexican imports after giving them a month-long timeout. The reason? Trump claims both countries haven’t done enough to curb drug trafficking and crime spilling over the U.S. border. Now, with pressure mounting, both governments are scrambling to convince him otherwise.
“The Mexicans and Canadians have been on the phone with me all day, trying to prove they’ll do better,” Lutnick said. “And the President is listening because, you know, he’s very fair and very reasonable. So I think he’s going to work something out with them.”
The proposed deal? Canada and Mexico agree to “do more,” and in return, Trump meets them “somewhere in the middle.” What exactly that means? Anyone’s guess. But, according to Lutnick, it’s not just another delay—this time, there will be a real deal. Supposedly.
Trump, ever the dealmaker, is expected to lay out his vision in a primetime address to Congress. Until then, markets—and just about everyone involved—will be holding their breath to see what “compromise” actually looks like.
