Commerce Secretary Howard Lutnick said President Donald Trump will “meet in the middle” with Mexico and Canada after 25% tariffs on America’s continental neighbors went into effect Tuesday. Lutnick told Larry Kudlow on Fox Business that he was on the phone with Mexican and Canadian officials all day, and he believes the president wants to “work something out with them.”
Lutnick said any changes wouldn’t be a pause, but rather Trump will make some kind of deal “in the middle” that would likely get announced tomorrow. It was unclear what exactly the Trump administration would agree to or what it has planned, but Lutnick said the president was going to “think about USMCA,” the free trade agreement Trump signed in 2020 with Mexico and Canada, when considering which imports would get relief. Most imports to the U.S. from Canada and Mexico comply with the USMCA.