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U.S. President Donald Trump is considering tariff relief for Mexico and Canada as early as Wednesday, according to Commerce Secretary Howard Lutnick. The move follows the U.S. imposing 25% tariffs on imports from both countries, prompting Canada to announce retaliatory measures.
Lutnick told Fox Business that Mexican and Canadian officials were actively negotiating to show commitment to trade rules. “The president is listening because he’s very fair and reasonable,” Lutnick said. “He’s looking for a middle ground, not a pause, but a deal where both sides contribute.”
Canada’s Prime Minister Justin Trudeau responded by imposing a 25% tariff on $20 billion worth of U.S. goods. Meanwhile, Mexico has not yet retaliated but plans to announce countermeasures by Sunday.
The tariffs, effective Tuesday, align with the U.S.-Mexico-Canada Agreement (USMCA) from Trump’s first term. Lutnick suggested that compliance with these trade rules might lead to exemptions. “If you follow the rules, relief is on the table. Otherwise, the tariffs stay,” he stated.
The Trump administration is closely monitoring the economic impact of the tariffs on its neighbors. While Trump previously offered a one-month delay through March 4, Lutnick indicated that another extension is unlikely. Instead, Trump seeks a long-term resolution.
This potential relief could help ease tensions between the U.S., Mexico, and Canada while reinforcing trade commitments under USMCA. As negotiations continue, businesses on both sides of the border await clarity on future trade policies.
