US Commerce Secretary Howard Lutnick stated on Tuesday that President Donald Trump is likely to find a compromise with Mexico and Canada on the newly implemented tariffs, as reported by Reuters. While speaking to Fox Business, Lutnick signalled that negotiations with the two neighbouring countries are in progress.
New tariffs sparks economic concerns
The tariffs, which came into effect on Tuesday, included a 25% duty on imports from Mexico and Canada and a sharp hike in tariffs on Chinese goods, increasing them to 20%. This move has sparked concerns about escalating trade wars, with a possible chance of slowing economic growth and surging consumer prices.
Many fears because of the looming effects of inflation, these trade tensions could further burden the American economy. Canadian Prime Minister Justin Trudeau strongly condemned the tariffs, calling them ‘’a very dumb thing to do.’’ In response, Canada announced immediate retaliatory measures against the United States, highlighting the tension in trade relations between long time allies.
Negotiations are in progress
Despite the initial conflict, Lutnick stated that both Mexico and Canada are actively participating in talks to address US concerns. ‘’Now, both the Mexicans and Canadians were on the phone with me all day today, trying to show that they will do better and the president is listening, ‘’ he stated during an interview on Fox Business’ Kudlow show.
Lutnick expressed hopefulness that a resolution is expected to happen. ‘’So I think he is going to work something out with them. It’s not going to be a pause …but I think he is going to figure out you do more and I will meet you in the middle somewhere and we are probably going to declare that tomorrow, ‘’ he said.
While the exact details of the negotiation deals continue to not be clear, the likelihood of a compromise can help in easing out the trade tensions.
(With inputs from Reuters)