U.S. Secretary of Commerce: Trump will compromise on tariffs with Canada and Mexico, may announce reductions tomorrow

U.S. Secretary of Commerce Howard Lutnick stated that the Trump administration may announce a pathway for tariff reductions on goods from Mexico and Canada as early as Wednesday.

"All day today, Mexicans and Canadians have been calling me, trying to indicate that they can do better, and the president is listening because, you know, he is very, very fair and reasonable," Lutnick said in an interview with Fox Business on Tuesday. "So, I think he will work with them to find a way—this won't be a pause (on tariffs), but I think he will come up with: you do more, and I will somehow meet you in the middle, and we may announce this tomorrow."

Lutnick did not specify what actions Trump is considering after imposing comprehensive tariffs on all goods from Canada and Mexico, which took effect on Tuesday.

Lutnick said that tariffs may be "at a middle level," and Trump would "adjust based on what the Canadians and Mexicans do, but won't fully compromise." Lutnick denied claims that tariffs would be completely eliminated, instead referencing the United States-Mexico-Canada Agreement negotiated during Trump's first term.

He said, "If you live under these rules, then the president is considering giving you a reduction. If you are not living by these rules, then you have to pay the tariffs."

Lutnick's comments mark the first public signal from the Trump team since the imposition of tariffs, indicating that Trump may be wavering on implementing the largest new tariffs in the U.S. in nearly a century.

Earlier on Tuesday, Trump had shown little willingness to consider exemptions for certain imports from Mexico and Canada. He stated that Canadian Prime Minister Trudeau's retaliatory measures would lead to "equal tariffs increasing by the same amount," mockingly referring to the Canadian leader as "the governor."

Following Trump's statement, global stock markets fell. From New York to London and Tokyo, stock markets declined, with the S&P 500 index dropping 1.2% on Monday, returning to pre-election levels. After Lutnick's comments, U.S. stocks rallied in late trading on Tuesday but fell again by the close. Automotive and banking stocks surged in after-hours trading on Tuesday, while Canadian heavy crude strengthened. The uncertainty of the trade war led to rapid shifts in market sentiment, with significant fluctuations throughout the day.

Analyst Adam Button noted that the U.S. Secretary of Commerce indicated that Trump might cut tariffs on goods between the U.S. and Mexico on Wednesday. This sudden shift in attitude raises curiosity about whether this is part of a U.S. plan. The reason is that the tariff policy announced by Trump on Monday had not been found on U.S. federal websites prior, and now this previously unpublished document is accessible, but the publication date shows March 6, which may suggest that the U.S. government will have some changes or exemptions before then. This situation may just be a bureaucratic procedural issue, but it has still intensified confusion