The News
US Commerce Secretary Howard Lutnick said the White House was considering tariff relief on Mexican and Canadian goods, a day after the 25% levies were imposed.
Any relief wouldn’t pause the tariffs, but would likely see the US meet its neighbors “somewhere in the middle,” Lutnick told Fox News, adding that he’d held phone conversations with representatives from both countries “all day” Tuesday.
Canada slapped retaliatory tariffs on the US Tuesday, with outgoing President Justin Trudeau accusing President Donald Trump of planning “a total collapse of the Canadian economy because that will make it easier to annex us.”
“This is a time to hit back hard and to demonstrate that a fight with Canada will have no winners,” he added.
Mexican President Claudia Sheinbaum similarly vowed to retaliate, saying “nobody wins with [the Trump administration’s] decision.”
US stocks plunged Tuesday in response to the threat of a new trade war, a stunning reversal of investors’ post-election confidence that Trump’s win would boost the economy.