Puerto Vallarta, Mexico – U.S. Commerce Secretary Howard Lutnick has indicated that President Donald Trump could announce a new agreement with Mexico and Canada regarding the 25% tariffs that came into effect on March 4. Speaking in an interview with Fox on Tuesday, Lutnick said the three countries have found “common ground” after extensive discussions.
According to Lutnick, the announcement could come as early as Wednesday. However, he emphasized that this would not be another temporary pause like the one enacted in early February. Rather, the expected arrangement would be a new commitment from Mexico and Canada to meet U.S. demands.
“Both the Mexicans and the Canadians have been on the phone with me all day today, trying to make the case that they will do better,” Lutnick said in the Fox interview. “The president is listening, because he is very, very fair and very reasonable.”
The Commerce Secretary described the forthcoming deal as a cooperative approach rather than a unilateral concession. “It’s not going to be a pause, nothing like that,” Lutnick insisted. “But I think you’ll understand: you do more and I’ll meet you somewhere in the middle, and we’ll probably announce it tomorrow.”
Tuesday’s losses followed President Trump’s move to impose a 25% levy on imports from both Canada and Mexico, which took effect at midnight. The president also slapped an additional 10% tariff on Chinese goods. In response, China announced additional tariffs of up to 15% on certain U.S. imports, while Mexican President Claudia Sheinbaum said Mexico would respond with its own duties and other retaliatory measures, details of which will be released this weekend.
Neighboring Canada also responded in kind, with Prime Minister Justin Trudeau announcing a 25% tariff on U.S. goods. Trump shot back that he was prepared to raise tariffs on Canada “even higher” if necessary.
Shares of companies heavily exposed to imports bore the brunt of the sell-off. Automakers GM and Ford slid more than 4% and nearly 3%, respectively, while restaurant chain Chipotle shed 2% due to its reliance on Mexican avocado imports. Retail giant Target declined 3% after its CEO warned that produce prices could climb in the coming days.
Puerto Vallarta, Mexico - U.S. Commerce Secretary Howard Lutnick has indicated that President Donald Trump could announce a new agreement with Mexico and Canada regarding the 25% tariffs that came into effect on March 4. Speaking in an interview with Fox on Tuesday, Lutnick said the three countries have found “common ground” after extensive discussions.
