Washington: U.S. Commerce Secretary Howard Lutnick has suggested that President Donald Trump may announce a deal on Wednesday to reduce tariffs on imports from Canada and Mexico.
In an interview with Fox News Business, Lutnick claimed that he had spent the entire day in discussions with Canadian and Mexican officials, who were trying to demonstrate their commitment to curbing the smuggling of the potent opioid fentanyl into the U.S.
However, contradicting Lutnick’s statement, Canada’s Foreign Minister Mélanie Joly told the BBC's Newsnight program that her office had not been contacted regarding any such agreement.
The U.S. imposed a 25% tariff on Canadian products, prompting Canada to retaliate with its own 25% tariffs on $107 billion worth of American goods. According to reports, tariffs on $30.8 billion worth of products will take effect immediately, while duties on the remaining $76 billion will be implemented over the next 21 days.
The trade dispute has raised concerns about economic repercussions on both sides of the border.
Lutnick believes that instead of completely lifting the tariffs, President Trump may opt for a reduction, seeking a balanced approach through negotiation.
“We may make an announcement about this tomorrow,” Lutnick stated, emphasizing Trump's strategy of "give and take" in trade negotiations.
Canadian Foreign Minister Joly responded by saying that while U.S. officials may make various claims, the ultimate decision lies with President Trump.
Meanwhile, sources have confirmed that Lutnick had a phone conversation with Ontario Premier Doug Ford regarding the issue.
On Tuesday, Canadian Prime Minister Justin Trudeau condemned Trump's 25% tariff on Canadian imports, calling it a “foolish move” and announcing retaliatory tariffs.
Trudeau warned that a trade war would be detrimental to both nations.
The Canadian Prime Minister also accused Trump of attempting to “completely destroy” Canada’s economy to facilitate U.S. annexation.
“That will never happen. We will never become the 51st state,” Trudeau declared.
