President Donald Trump is expected to announce a tariff reduction deal with Canada and Mexico as part of ongoing negotiations to ease trade tensions between the three nations. US Commerce Secretary Howard Lutnick suggested in a recent interview that Trump will “probably” unveil the agreement on Wednesday after Canada and Mexico pledged stronger efforts to curb the flow of the synthetic opioid fentanyl into the United States.
Speaking with Fox Business Network, Lutnick emphasized that both Canadian and Mexican officials had been actively engaging in discussions throughout the day. He indicated that their willingness to cooperate on drug enforcement measures could pave the way for tariff relief. “Both the Canadians and Mexicans were on the phone with me all day today trying to show that they’ll do better,” Lutnick stated. “I think [Trump’s] going to figure out, ‘you do more, and I’ll meet you in the middle some way.’ And we’re probably going to be announcing that tomorrow.”
Despite Lutnick’s optimism, Canada’s Minister of Foreign Affairs Mélanie Joly refuted the claim, stating that her office had not been involved in any discussions about a tariff reduction deal. She dismissed the remarks, asserting that only President Trump has the authority to finalize such an agreement. “US officials can say many things, but the only one that really takes a decision is President Trump,” Joly remarked, casting doubt on whether a resolution is imminent.
The latest developments come after the United States imposed a 25 percent tariff on Canadian and Mexican imports on Tuesday, escalating tensions and prompting swift retaliatory measures from both nations. The Canadian government responded by imposing its own counter-tariffs on US goods, sparking fears of an economic standoff that could have long-term repercussions. Canadian Prime Minister Justin Trudeau condemned the US-imposed tariffs as reckless and counterproductive, calling them a “very dumb thing to do.” He vowed to fight back against what he described as an unjust economic attack on Canada. In response, he announced new import duties on US products and warned that further escalation would be costly for both countries.
Trump, however, appeared unmoved by Trudeau’s warnings. Taking to his Truth Social platform, he reaffirmed his hardline stance on trade, warning that any retaliatory measures from Canada would be met with an immediate and equal response. “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount,” Trump posted.
Trudeau further escalated the war of words, accusing the US president of attempting to undermine Canada’s economy as a strategy to pressure the country into submission. “That is never going to happen. We will never be the 51st state,” Trudeau declared in a firm rebuttal. His statement reinforced Canada’s commitment to defending its economic sovereignty against what he views as aggressive US policies.
The trade conflict has also drawn concern from Canadian provincial leaders. Sources told The Globe and Mail that Lutnick had spoken with Ontario Premier Doug Ford, urging Canada to refrain from further retaliation. The Trump administration reportedly views Trudeau’s strong rhetoric as a personal attack on the president, complicating diplomatic efforts to reach a resolution.
While tensions with Canada and Mexico continue to escalate, the United States is also locked in an economic standoff with China. Washington recently implemented a new 10 percent levy on Chinese imports, adding to a series of trade restrictions that have been imposed since Trump’s first term. In response, Beijing swiftly retaliated with tariffs on US agricultural products, vowing to resist American trade pressure. A spokesperson for China’s foreign ministry made it clear that Beijing is prepared to fight back. “China will fight to the bitter end of any trade war,” the spokesperson stated, signaling that the global economic landscape could face further disruptions.
As Trump prepares to make a formal announcement regarding the tariff situation, the stakes remain high for businesses and investors across North America and beyond. The uncertainty surrounding these trade disputes has heightened market volatility and raised concerns about potential long-term economic consequences. With major global economies bracing for further disruptions, the coming days could prove pivotal in shaping the future of international trade policies.
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